Despite the growing popularity of asset tokenization around the world, bringing more security, dynamism and profitability to companies and investors, the news is not always good – the best example is the decision in the USA to prevent the creation of CBDCs by the Fed.
When we talk about the largest economy on the planet and where all digital transformations are born or rather develop before taking over the world, it is news that worries the cryptomarket to some extent.
The path of the American anti-CBDC law so far and the possibility of its enactment create diverse expectations about how the sovereign currency token will be viewed in the future.
What are the next steps of a possible law that prohibits the Federal Reserve from creating a central bank digital currency will affect others?
BLOCKBR, a company that develops tokenization infrastructure, will talk about the decision and how the fiat token is being seen in the world.
WHAT IS CBDC CREATION
CBDC is a country’s fiat currency represented digitally by an encrypted file – which can also be called a monetary token.
The process for creating CBDC tokens is the same as that used to generate business tokens or investment tokens – the use of a private blockchain, as opposed to the public blockchains used in the vast majority of tokenization projects.
The responsibility for issuing CBDC tokens in each country where there are projects will be defined according to the local monetary system. In Brazil, the forecast is that it will be the responsibility of the Central Bank [067-069] and the Casa da Moeda, as it involves issuing currency, even though it is digital.
ARE CBDC AND CRYPTOCURRENCY THE SAME THING?
Technologically, yes. Both are created using blockchain technology and considered as monetary tokens – cryptoactives used as a means of payment.
In addition to being payment tokens, digital currencies have become digital investment assets with high risk and vulnerability to speculative bubbles and numerous cases of crimes with cryptocurrencies, such as FTX in 2022.
The national currencies in tokens will have the sole purpose of being another way of carrying money that is not cash in the wallet or current account and will be used for digital payments.
The virtual fiat token is backed by sovereign currency. There is no speculative market, as is the case with bitcoin and other cryptocurrencies.
WHAT THE US ANTI-CBDC LAW SAYS
The law against CBDC approved in the Chamber of Representatives (equivalent to the Chamber of Deputies in Brazil) determines that the Federal Reserve does not have legal competence to create sovereign digital currency in the United States.
It also defines which projects of this nature must pass through the American House and Senate. In the words of Representative Patrick McHenry, the approved law guarantees that any CBDC in the United States will only be created after explicit authorization from Congress.
According to McHenry, the project protects the privacy of Americans and our financial system from the risks that CBDCs pose.”
In addition to creating CBDCs, the Fed is also prevented, by law, from initiating programs, even in the nature of studies, and tests to analyze the technical feasibility of CBDC in the country.
The evolution of tokenization in the market is carried out by legally and technologically solid organizations committed to redefining the roles of financial agents!
In addition to effective token projects, BLOCKBR has the expertise to organize and develop all the complete infrastructure necessary to meet all your expectations!
WHAT ARE THE NEXT STEPS FOR CBDC IN THE US?
After the moment of perplexity over the Chamber’s decision, we can see that the objective was to bring to the legislature the authority to establish a CBDC, if it is approved by the houses.
However, the path to enacting the anti-CBDC law will not be so simple. While the approval in the Chamber had a majority of parliamentarians from the Republican Party, traditionally resistant to disruptive technologies – in the Senate the majority is from the Democratic Party.
Democratic lawmakers are sympathetic to digital innovations and tend to reject the law.
The cryptomarket has some concerns.
- There is a political clash that drags out the decision for months with the suspension of the Federal Reserve project to create the American digital dollar;
- There is no qualified debate to analyze the risks of CBDC highlighted in the Chamber;
These facts may bring some uncertainty to CBDC studies in other countries, especially in Brazil, where the digital real project is at an advanced stage.
HOW IS THE DEVELOPMENT OF CBDC IN THE WORLD
Currently, 114 countries are developing central bank digital currency projects, 11 of which have already implemented CBDC and around 60 countries, including Brazil, are advanced – between the final phase of technical development and testing.
It is important to highlight that the European Union has been studying the creation of the digital euro, which will give a great boost to several countries – many of them European – to accelerate their decisions to tokenize the national currency.
What are the benefits of the Brazilian CBDC for the country’s economy?
In Brazil, DREX is undergoing advanced studies and the first transactions with digital real have already taken place in the project’s test environment, led by BACEN.
DREX is expected to be implemented at the end of 2024.
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying a token is simple if you have a partnership that makes everything simple like BLOCKBR! We are an experienced asset tokenization company qualified to guide you on how to apply business tokens safely and with great results.
Open an account on our token marketplace and in minutes you will have access to a diverse universe of offers for all investor and budget profiles. Additionally, you can start investing in tokens from 50 reais!
Come to BLOCKBR, boost your results and get closer to your dreams!
BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.
For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks
