Brazilian Central Bank Governor Fabio Araujo recently described Bitcoin (BTC) as a financial innovation.
Director of the Central Bank of Brazil Fabio Araujo, August Bitcoin in a statement earlier this month as a financial innovation he said he saw. Openly praising the technological features of Bitcoin, Araujo stated that this technological infrastructure will serve as a pioneer in the creation of many new financial products in the future.
In addition to this, Araujo said that the authorities in Brazil who are interested in the subject, have the technological infrastructure of Bitcoin. for nearly 10 years He said they were investigating. The detailed explanations of the central bank governor are as follows:
We have been researching Bitcoin’s technology since 2009, when Bitcoin was launched. This architecture, which is a great pioneer in the creation of Web3, offers us the advantages of the Proof of Work system.
Araujo, who does not hesitate to express his positive thoughts about Bitcoin, said that the volatile movements in Bitcoin price prevent them from seeing it as a “currency”. one of the biggest obstacles also stated that. Citing high price volatility, the head of the central bank underlined that for this reason, they do not have thoughts of using Bitcoin as legal money. Also in Bitcoin integration The role of CBDCs is important Araujo made the following statements on the subject:
Although CBDCs support crypto integration, we actually know that these CBDCs are not cryptocurrencies. It should be seen as a tool that works in harmony with the markets and prevents price fluctuations, just like in Real.
Stating that the Brazilian Central Bank continues its detailed research on Bitcoin CBDCs, Araujo said that a possible Bitcoin CBDC in 2024 indicated that it may become active. One of the developments in question is that Brazil, which hosts intensive studies on Bitcoin, passes a Bitcoin law to the approval of the parliament in the next week.