South American Countries are Starting to Develop their CBDCs

Central bank digital currencies (CBDCs) are becoming popular in various parts of the world. Apex banks in Europe, North America, Africa, Asia and South America are working on their launching their digital currencies.

More central banks around the world will launch their CBDC pilot over the next few months.

Brazil’s Central Bank to Launch CBDC Pilot by Next Year

The Central Bank of Brazil (BCB) is reportedly planning to start a pilot program for its CBDC by next year. This is according to local outlet Estadao, who cited BCB President Roberto Campos Neto.

Cryptocurrencies have gained massive adoption in South America in recent years, and the BCB president acknowledged that fact. He stated that “[Crypto] is already starting to affect even the national accounts, which means it has become a relevant investment instrument.”

In September, the BCB revealed that it intends to launch the final version of its CBDC by 2024. The apex bank is set to start initial tests by next year and wants to perfect the digital currency over the next two years.

Cryptocurrencies have become very popular in Brazil. The total crypto investment in the country so far in 2021 totaling nearly $5 billion.

CBDCs are Gaining Adoption in South America

The rise of cryptocurrencies and stablecoins has created the need for central banks around the world to issue their digital currencies. In South America, numerous countries have started working on their CBDCs.

Last week, the Central Reserve Bank of Peru (BCRP) announced that it is developing its CBDC. However, there is no set timeline for the launch of the digital currency. According to CBDC Tracker, other South American countries that are actively researching and developing their CBDCs include; Chile, Honduras, Uruguay and Ecuador. More countries will enter the CBDC space over the next few years.

Beyond South America, central banks in Europe, Africa, Asia and North America are either discussing, researching, developing or piloting their CBDCs. China remains one of the most advanced countries in terms of CBDC development. The Asian giant has already piloted its Digital Yuan and is testing to see how it performs in the real world.

Nigeria, Africa’s leading economy, is another country that has piloted its CBDC. The e-Naira wallet has gained more than 500,000 downloads since it was launched a few weeks ago.