The Digital Real Will Increase Financial Services Availability in Brazil

Reading Time: < 1 minute

The Central Bank of Brazil is aiming to introduce a digital real (CBDC) into the financial system by the end of 2024, partnering with fintech startups and commercial banks.

They hope to encourage competition in the financial sector by allowing customers to choose the most convenient payment tool, such as reducing costs on loans and increasing the availability of banking services.

However, blockchain developers have raised concerns that the Brazilian authorities are not aiming to protect the privacy of users, but rather for total control over their finances.

According to Pedro Magallians, the Central Bank’s software allows it to track user transactions and, potentially, block activity or even transfer funds without consent.