CBDC, or Central Bank Digital Currency, is a growing economic force in the world. With more and more countries actively pursuing a digital version of their official currency, the trend seems to be in favor of CBDCs. However, CBDCshave attracted strong criticism in the past, as it continues to do even now. That is not stopping more countries from adopting central bank digital currencies, and the list of countries with an active CBDC project is only increasing.
After Russia launched its digital ruble and Argentina imposed new crypto taxation laws, Brazil has become the newest country with plans to roll out its own CBDC. The President of the Central Bank of Brazil Roberto Campos Neto confirmed the same to news outlets a few days back.
Brazil hopes to have its CBDC ready by 2024, less than 3 years from now. By that time, we can expect many more countries to launch their own CBDCs. CBDCs have a unique advantage over other digital currencies. Unlike cryptocurrency, they are not extremely volatile or high-risk. It is also easier to impose financial regulations on CBDCs than on cryptocurrencies simply for the number and variety of the latter. As we move towards the end of 2021, we can expect a lot more activity in the fields of CBDC research and innovation in the next year. With the ability to make money transfer faster and cheaper than ever, CBDCs are a growing force that demands attention from all sectors.