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BACEN Central Bank’s next steps in tokenization!

Tokenization is growing fast in Brazil and there is no longer any reason to ignore its potential to heat up markets. For this reason, the Central Bank BACEN has invested heavily in studies on the presence of tokens in business.

The various initiatives coming from the bank are key to increasing people’s confidence in cryptoactive and the number of companies that can invest in asset tokens to raise funds with more agility and security.

Security, by the way, is still a taboo in cryptocurrencies. After all, the token is developed on an innovative technological infrastructure that is also used to produce the cryptocurrencies.

This similarity between the two digital assets can hinder the analysis of tokenization, due to the speculative degree of digital currencies. Therefore, the participation of regulatory bodies is valuable to convey credibility to the market.

There is no more talk about whether the economy will be tokenized but when we will have the economy in tokens.

Therefore, BLOCKBR, a web 3.0 native company, brings you a panel with the movements towards tokenization in the economy and we can look forward to in the coming years or months!

TOKENIZATION SCENARIO IN BRAZIL

Tokenization is taking over market spaces in global economies at an upward curve. Boston Consulting estimates that by 2030 we will have 10% of the world’s GDP tokenized. It is an impressive projection, and one that is not far off.

  • For those who trade, tokens are effective, safe, transparent vehicles and boost profitability and liquidity;
  • For those who invest, it is the possibility to reach several assets and rights that are hardly accessible in the traditional financial market, especially for small investors.

In Brazil, the scenario is very positive: 60% of institutional investors either make investments in tokenized goods and rights or have plans to do so. Only Singapore has a higher interest rate for tokens.

The private and public environments with a tradition of proactivity towards new technologies and the positive regulatory environment make Brazil one of the most developed countries in tokenization.

BANKS ARE GETTING INTO TOKENIZATION

One fact that will be decisive in driving tokenization in Brazil is the entry of large banks, a sector that used to be highly resistant to the idea of a distributed database ecosystem for transactions without a central control and that does not generate fees.

Some major initiatives have already happened or are on the drawing boards:

  • In the first initiative in Latin America by a major financial institution, BTG Pactual launched in 2019 the security to ken ReitBZ, secured in securities, the first dividend-paying token in the real estate tokenization sector;
  • Itaú has a project underway to tokenize the bank’s traditional financial products.

FIDC Tokenization: Digitalization of assets in the credit market!

DOES CRYPTOCURRENCY REGULATION BENEFIT TOKENS?

In December 2022, the Cryptocurrency Law was sanctioned by the President of the Republic, which will regulate the digital currency market and the operation of digital currency brokerages and curb and combat financial crimes with cryptocurrencies.

The cryptocurrency regulation law was expected and welcome to increase the credibility of those who are in the cryptomarket legally and give more security to those who invest. Among the main changes are:

  • Legitimize cryptocurrencies as a means of payment;
  • Consider digital assets as investment;
  • Create mechanisms to protect investors;
  • Define obligations for transparency and information disclosure;
  • Define cryptocurrency swindling in the Criminal Code with penalties.

And how do business tokens benefit from the law?

There is still a feeling in the investor market that cryptocurrency risks can catch up with tokens, even with the growth of tokenization in various niches.

This view occurs because both crypto-actives are born on the blockchain, although the token only exists by demands of tokenization projects, backed by known and legalized assets.

It is a consensus that the changes that will come with the law will benefit tokenization more, which is already established as a business model not sustained on volatility and speculative bubbles.

The trend is for BACEN to be the regulator of crypto-activities in Brazil, with the exception of CVM and the tokenization of securities (the security tokens) that are financial assets regulated by this body.

Tokenização e Banco Centrald

 

HOW THE CENTRAL BANK IS USING TOKENIZATION

REAL DIGITAL

The digital real is being developed by a project led by BACEN to be the Brazilian digital currency or CBDC (central bank digital currency).

In practice, it is the encrypted fiat currency that Brazilians will be able to have in addition to the balances in accounts and cash in their pockets.

The goals of the digital real are:

  • Reduce the issuance of paper money and corresponding bank cost;
  • Include more people in the financial market;
  • Allow zero-cost transactions;
  • Serving people who are not covered by banking services;
  • Simplify the movement of money in purchases and investments.

Digital fiat currency is an initiative taken by central banks in several countries as a way for economies to take advantage of tokens in financial and banking transactions.

The Central Bank of Brazil (BACEN ) has started the test phase of the digital real, which should end in the second half of 2023.

Learn about the advantages of investing in tokens!

GT TOKENIZATION

The Tokenization WG is the interdepartmental working group created by the Central Bank to develop studies related to financial digital assets created on blockchain tokenization.

It is a project with an advisory profile and proposes to validate and recommend aspects related to the activity of tokens in the economy, among them:

  • Compare the token scenarios in Brazil and abroad;
  • Analyze the works of the digital real creation lab;
  • Study the impacts of blockchain on the commerce of products and services;
  • Assess the degree of security of current tokenization solutions;
  • Analyze and propose regulatory adjustments.

It will be a very comprehensive work about the performance and perspectives of tokenization in Brazil and this will bring important benefits, because it will be a diagnosis of constant improvement for the token business to grow solidly.

In the end, everyone wins: whoever trades tokens (and will achieve better performances) and whoever buys tokens (and get better returns)!

The Tokenization WG went into effect on January 1, 2023 and will last 180 days. At the end of this period, a final report will be issued with opinions and propositions.

START INVESTING IN TOKENS WITH BLOCKBR!

Investing in tokens is a simple process and for that, you just need to open an account at BLOCKBR and then get to know the offers that our clients make available in the BLOCKBR tokens marketplace.

There, you will find the most interesting projects, with good deadlines and great remunerations, and all with the security, transparency, and agility that the blockchain provides.

Come to BLOCKBR and become a token investor!

BLOCKBR Digital Assets is a web 3.0 native fintech that unites technological innovation and digital knowledge to transform physical assets into digital ones, in the process of tokenization.

The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.

We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.

Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?

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