The cryptocurrency market and the proposal to the Central Bank

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Recently, the cryptocurrency exchange Mercado Bitcoin filed a project with the Central Bank to unite the cryptocurrency universe with the National Financial System (SFN). The proposal will be implemented through the Central Bank's Regulatory Sandbox . In other words, with the authorization of the financial authority, entities can test innovative services in the area of ​​finance or payments in an environment with greater flexibility in regulatory requirements, for a specific period.


Along with the registration carried out by Mercado Bitcoin, Bacen's Sandbox has just over 50 registered projects, which will be evaluated by specialists from the institution. In total, 10 proposals will be selected to operate in the test model. If the project filed by the exchange is approved, it will be the first time that Bacen will adopt solutions focused on cryptocurrencies for the entire society.


In this sense, the project's progress not only demonstrates innovation but also highlights the challenges faced by the Central Bank of Brazil in modernizing the market and making it more digital. Regulating chile mobile database cryptocurrencies will require a revolution in the financial system, especially since digital assets are currently decentralized. In other words, there is no agency responsible for controlling or authorizing the issuance, transfers, and other operations related to currencies. This action is the responsibility of the users themselves, who operate through a system that enables transactions on the internet — a technology known as blockchain, which guarantees the security of transactions.


With the topic on the rise and heavily discussed by the financial authority, this decentralization in Brazil could happen and the country will soon have the digital real. This is an announcement made by Bacen, in which some guidelines were released that will guide the implementation of the Brazilian virtual currency. According to a note published by the institution, the currency, however, will be different from cryptocurrencies. There is an understanding that resources such as Bitcoin have characteristics of assets and, for Bacen, these still represent risks.


Thus, based on the assessment, considered preliminary by the entity, the Brazilian currency could bring greater efficiency to the SFN and the Brazilian Payments System (SPB), reduce cash costs and increase financial inclusion. In practice, the digital currency will work in a very similar way to cash: issuance will occur only by the Central Bank and will then be passed on to end users by participants in the payment system.