BC: transition to digital economy must be done in an orderly manner

The finding is from the study Real Digital: a Platform for Tokenized Finance, released this Thursday by BC. Tokens are product registrations, made on digital platforms. In English, the word means token or token. In technology, it means the digital representation of an asset, be it money, property or investment.

According to the Central Bank, digital currencies issued by central banks, as mechanisms that facilitate innovation in financial markets, “allow the incorporation of new technologies and new business models with the potential to meet the population’s demand for natively digital means of settlement, similar those available in the cryptocurrency ecosystem”.

The study released today discusses how the digital real – a tool that should be available to the population by the end of 2024 – and tokenized versions (real assets converted into digital) of digital currencies can meet the demand for a digital representation of liquidity in an environment of tokenized finance.

In the bank’s assessment, the official digital currency will provide a safe and regulated environment for the generation of new businesses and more democratic access to the benefits of digitizing the economy for citizens and entrepreneurs.

Real digital

The digital real entered the testing phase in March this year, at the Central Bank, through a platform that allows the registration of various types of financial assets. The tool should only be available to account holders at the end of 2024, when it will start receiving tokenized deposits.

Tokenization can be defined as the digital representation of a good or a financial product, which facilitate negotiations in virtual environments. Through a series of codes with requirements, rules and identification processes, assets (or fractions thereof) can be bought and sold in virtual environments.

According to the Central Bank, the digital real will work as a large-scale Pix, which will allow instant transfers of wholesale values, such as large companies and financial institutions. Pix caters to retail, being used by individuals, entrepreneurs and small businesses.