Real Digital – Get to know the Brazilian cryptocurrency
Real Digital: learn about the digital version of our real and how this virtual and Brazilian cryptocurrency will work.
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The Brazilian digital currency has not yet been launched; the Central Bank expects it to be launched by 2024 at the latest.
In the meantime, how about learning more about cryptocurrencies and how Real Digital should work?
See our index below:
- What are cryptocurrencies;
- How Real Digital should work;
- What are the possible advantages of using this Brazilian digital currency?
- Conclusion.
What are cryptocurrencies?
Cryptocurrencies are virtual currencies, they have economic value, but cannot be printed on physical banknotes.
Your transactions and operations are carried out only in a virtual environment.
The technology behind them is called Blockchain, and it's based on cryptography. That's why they're called cryptocurrencies.
Apart from that, it is this technology that guarantees speed and security in transactions between users.
Cryptocurrencies are highly secure and impossible to hack because transactions are all protected by technology and mathematical calculations.
One of the main characteristics of cryptocurrencies is that they are decentralized.
In other words, this means that they are not managed by any government or financial institution, as the information is not saved on a central server.
Another feature worth highlighting is that they are volatile, meaning the price can change up or down in an instant.
However, some currencies are more stable than others. Currently, there are around 3,000 different types of cryptocurrencies worldwide.
In fact, the first cryptocurrency was Bitcoin, which appeared in mid-2008, but no one knows for sure who created it.
However, the pseudonym of the person or people responsible is already known to the public, the person possibly responsible for creating the cryptocurrencies is identified as Satoshi Nakamoto.
But no one knows for sure if it is one person or a group of programmers.
How should Real Digital work?
THE Real Digital It will be a CBDC, an alternative currency, however, it will have the same value as the real that we already know and is part of our daily lives.
Brazilian digital currency cannot be converted into banknotes, so it is important to be aware that it can only be used digitally.
Many establishments are starting to accept cryptocurrencies as a form of payment, so this won't be a problem; in fact, that's the BC's idea.
The intention is that the Real Digital Become part of Brazilians' daily lives and simplify your life. For example, you can use cryptocurrencies to make transactions, investments, and much more!
When you purchase your cryptocurrencies, you will receive codes from the Central Bank informing you of the value.
Although we call it cryptocurrencies, in reality, it is not, it is simply the digital version of our real.
Cryptocurrencies are private, are not regulated by the Central Bank, are decentralized, and there is no absolute financial power that controls them, as already mentioned in the topic above.
Furthermore, they function as an investment model.
The Brazilian digital currency will be issued by the Central Bank, but distributed by banks, financial institutions and other payment system participants.
What are the possible advantages of using Brazilian digital currency?
Well, the first advantage to stand out from this digital currency is security, because you will no longer need to carry cash in your wallet.
Of course, the card already does this job well, but having another alternative in our favor will be advantageous as well.
The second advantage to highlight is that you can use it in Brazil and abroad, and there is no need to convert it through financial institutions.
Furthermore, by purchasing the Digital Real, the issuance of paper money will decrease, and our environment will also be spared.
Finally, there will also be changes in the political environment, because the use of digital currency will inhibit money laundering.
Certainly, Brazilians will embrace Brazil's digital currency, because we are already part of the digital world and most of our transactions and operations are already carried out digitally.
One of the main differences would be the independence that the currency would bring, because it would be possible to deal with the asset without the need for a financial institution, just like cryptocurrencies.
Conclusion about Real Digital
Expectations for the launch of Real Digital are high, there are rumors that it will go into circulation in 2022, but nothing concrete yet.
Unfortunately, we don't know what the real purpose of this digital currency is and what disadvantages it will bring to us, mere mortals.
Some enthusiasts claim that digital currency could bring a boost to the Brazilian economy.
However, there are some investors who believe that the currency will only benefit the “big fish”.
In the meantime, we can only wait for the release of Real Digital and understand the BC's real intention and how the new development will affect our personal and economic lives.
Finally, don't forget to check out the new functionality of the most popular payment method of the moment, also created by the BC, Pix Change.
