Fabio Araujo, director of the Central Bank of Brazil, praised the properties of Bitcoin, saying that it is a financial innovation that uses new technologies. For Araujo, Bitcoin was the catalyst for what is known today as Web3. On one occasion, Araujo also commented on the state of the development of the digital real, stating that his organization hopes to add smart functionality to the currency.
Brazil’s Central Bank Praises Bitcoin as a Pioneer Web3 Tech
More and more central banks around the world are dealing with the issue of cryptocurrencies and how to innovate to keep up with these technologies. Fabio Araujo, director of the Brazilian Central Bank, praised Bitcoin as a financial innovation that gave rise to the Web3 movement and talked about how the real digital currency, the still-in-research Central Bank Digital Currency (CBDC), has programmable features. .
At an event promoted by the São Paulo Business School, Araujo said:
We started accelerating this in 2009, with the launch of Bitcoin, with distributed database technology that facilitates the creation of Web3. The Bitcoin app brings a Proof of Work solution, which is fundamental to the services that Web3 provides to residents.
Furthermore, Araujo noted that this technology predated Ethereum, which includes smart contracts that add more possibilities to the financial system.
real digital programmable
Araujo also touched on the subject of digital realism, hinting at the possibility of having intelligent capabilities. In a set of slides presented at the event, central bank digital currency appears to be associated with Web3 elements, such as digital assets, tokens, Internet of Things (IoT) protocols, and offline payments.
The director of the central bank also made a clear distinction between real digital assets and other crypto assets such as bitcoin. Male Araujo:
Although a CBDC uses technology that supports encryption, a CBDC is not a crypto asset. CBDC is an expression of the real in the environment in which cryptocurrencies operate, in the same way that the riyal does not compete with listed assets.
Araujo explained that digital reality was an opportunity to bring smart functionality to bridge the current gap between traditional finance and Web3 protocols. While the Bank has conducted many experiments related to the concept of digital reality, the decision to launch or suspend this project will be made in 2024.