Coins and paper money may finally have their days numbered. The proposal for Real Digital , a version of our currency that is completely online and without presence in the physical environment, will go out of print until, at the latest, 2024. It is yet another Brazilian attempt to align itself with what is most modern and innovative not only in the area of technology, but also in the areas of retail and finance.

However, contrary to what many think, it is not a cryptocurrency , totally decentralized and unconnected to regulatory bodies. Real Digital is far from that: it is a CBDC (central bank digital currency), and is linked to the same more traditional payment structure. However, it also shares some advantages over the crypto world. Check out:

1 – Agility in payments

There is no doubt that the main advantage when talking about a digital currency, regardless of functionality and origin, is the agility it provides to payment. Transactions are confirmed in a matter of seconds, with money going from one point to another without going through any intermediary – as with credit cards. The PIX was already a prelude to this experience for consumers and its mass use with just over a year of existence indicates that it has fallen into the public’s taste.

2 – Security and speed in international transactions

Any transaction that involves companies and people in another country represents a headache for those involved. Whether something simple, like taking money to travel, or complex, like negotiating companies, moving abroad is bureaucratic and full of documentation. With the digital version of the real this shouldn’t be a problem anymore. As its entire structure is digital, it can circulate through the web and quickly reach its destination without any factor that can interfere with it.

3 – Fraud prevention

Real Digital is not a cryptocurrency, but it will certainly use blockchain technology in its structure. Blockchain, according to the translation of its name, indicates that pieces of information travel across the internet in encrypted blocks – to then join together as a chain. Today it is one of the most secure means of digital transactions as it significantly reduces the risk of fraud and prevents cyber attacks on this information. It is the end of that concern that people have in relation to purchases made virtually, for example.

4 – Freedom for consumers

One of the main differences between Real Digital and cryptocurrencies is the origin. While the former is linked to the Central Bank of Brazil, the latter are fully decentralized (most are not linked to any regulatory body). However, this does not mean that the digital version of our currency is bureaucratic. On the contrary, it will maintain characteristics of decentralization, with lower fees and intermediaries in the payment ecosystem – which guarantees greater freedom to consumers, who can choose the best ways to pay their bills.

5 – Scanning and reducing the cost of printing money

Finally, there is also an important benefit for the National Financial System itself. Putting paper banknotes and coins into circulation costs money – and it’s not little! Most coins cost more than their value later on. With Real Digital, the reduction of physical money will fall even further in national retail, saving public money with printing and minting. It is also important to remember that digital transformation is already a consolidated reality, forcing public authorities to find ways to digitize their processes and offer more convenience, comfort and safety to the population.

*Cássio Krupinsk is CEO of BlockBR , a fintech of digital assets marketplace and investments.