Fabio Araujo, governor of the Central Bank of Brazil, has praised Bitcoin’s properties, saying it is a financial innovation that leverages new technologies. For Araujo, Bitcoin was the catalyst for what is now known as Web3. At an event, Araujo also commented on the state of development of the digital real and explained that his organization hopes to add smart features to the currency.
Central Bank of Brazil Praises Bitcoin as Pioneer of Web3 Technology
More and more central banks around the world are looking at cryptocurrencies and how they can innovate to keep up with these technologies. Fabio Araujo, Director of the Central Bank of Brazil, praised Bitcoin as a financial innovation that spawned the Web3 movement and spoke about how the digital real, the still-explored Central Bank Digital Currency (CBDC), could have programmable features.
In an event sponsored by the Sao Paolo Business School, Araujo explained:
We started adopting Bitcoin in 2009 to accelerate this with a distributed database technology that makes Web3 easier to build. The bitcoin application brings the proof-of-work solution, which is a fundamental thing for the services that Web3 brings to the population.
In addition, Araujo noted that this technology preceded Ethereum, which includes smart contracts that add more possibilities to the financial system.
A programmable digital real
Araujo also touched on the subject of the digital real, hinting at the possibility that it might have intelligent abilities. A series of slides presented at the event will show that the central bank digital currency is linked to Web3 elements such as digital assets, tokens, Internet of Things (IoT) protocols and offline payments.
The central bank governor also made a clear distinction between the digital real and other crypto assets like bitcoin. Araujo explained:
Although CBDC uses the technology that supports crypto, CBDC is not a crypto asset. The CBDC is an expression of the real within the environment in which cryptocurrencies operate, just as the real does not compete with listed assets.
Araujo explained that the digital reality is an opportunity to provide intelligent capabilities to bridge the existing gap between traditional finance and Web3 protocols. While the bank has conducted various experiments with the concept of digital reality, the decision to start or stop this project will be made in 2024.
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