Fabio Araujo, president of Brazil’s central bank, praised Bitcoin’s properties, calling it a financial innovation that uses new technology. For Araujo, Bitcoin was the catalyst for what is today known as Web3. At an event, Araujo also commented on the state of the art of digital reality, saying that his organization wants to add intelligence to the currency.
Central Bank of Brazil hails Bitcoin as pioneer of Web3 technology
More and more central banks around the world are dealing with cryptocurrencies and how to innovate to keep pace with these technologies. Fabio Araujo, president of Brazil’s central bank, praised bitcoin as a financial innovation that sparked the Web3 movement, and spoke about digital reality, a still-under-study central bank digital currency (CBDC) that could have programmable capabilities.
In an event promoted by the São Paulo Business School, Araujo said:
We started accelerating this process in 2009, with the introduction of Bitcoin, distributed database technology facilitated the creation of Web3. The Bitcoin application brings the proof-of-work solution that is the foundation of the services that Web3 brings to people.
In addition, Araujo said the technology preceded Ethereum and includes smart contracts that add more possibilities to the financial system.
programmable digital reality
Araujo also touched on the theme of digital reality, hinting at the possibility of it having smart capabilities. In a set of slides presented at the event, central bank digital currencies were shown linked to Web3 elements such as digital assets, tokens, Internet of Things (IoT) protocols and offline payments.
The central banker also made a clear distinction between digital physical objects and other crypto-assets like bitcoin. Araujo said:
Even if a CBDC uses crypto-enabled technology, a CBDC is not a cryptoasset. CBDC is an expression of Real in the context in which cryptocurrencies operate, just as Real does not compete with listed assets.
Araujo explained that digital authenticity is an opportunity to bring intelligent capabilities to bridge the existing gap between traditional finance and Web3 protocols. While the bank has already conducted various experiments involving the concept of digital reality, the decision to launch or shelve the project will be made in 2024.
What do you think of the Brazilian Central Bank’s stance on Bitcoin? Let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to offer, nor is it a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused or related to the use of or reliance on any content, goods or services mentioned herein.