Technology has also brought about important transformations in the financial sector, and little by little money has been reinventing itself. The possibility of implementing digital currency in Brazil and in the world has been increasingly real, as it already is in Sweden. Countries such as China, the United States and Brazil are studying the possibility of adopting this change.
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A digital currency is any currency or asset similar to paper money that can be stored and exchanged in a virtual environment. It could be a national currency that no longer exists in physical form, or even a cryptocurrency, which is a digital currency.
Also, when the digitization of a currency comes from the government, it works like any other currency, except there is no printed paper.
In this way, digital currency refers to any type of currency that exists in a virtual environment, but not in the physical world. Therefore, the concept is broader than cryptocurrencies, for example, which are decentralized currencies.
This digital money would be a form of CBDC, an acronym for Central Bank Digital Currency, which translated means “Digital Currency Issued by the Central Bank”, configuring itself in a model of control of a virtual currency in the Brazil. Therefore, there would be an exchange of paper currency for a digital one, through some cell phone mechanism or a token that would have the same functioning as paper currently has.
Brazil, through the Central Bank, released in May last year the necessary guidelines for the creation of a digital currency in the country, characterizing the first step towards a local CDBC. The government's idea is to listen to public opinion and launch this currency within the next 8 years.
China, for example, is already developing the Digital Yuan, the name given to its digital currency. In addition, the United States is also studying the possibility of introducing this modality of virtual money in its country.
However, the convenience of technology has created new challenges for Central Banks. One of the most important is dealing with the protection of data and systems involved in digital currency.
For example, in January of this year, 160,000 Pix keys were compromised. That is, it is very common that when you have a centralization of transactions, hackers target and attack this system. Therefore, it is very important to have a look at the security of these processes.
