Brazil in Financial Crisis Turns to Crypto For Solace

 

Brazilan President Jair Bolsonaro proclaimed tall expectations that cryptocurrency will bring to his nation by appointing crypto expert Roberto Campos Neto, an economist by profession to head Banco Central Bank.

History is in the making, as the beleaguered Brazilian government in the doldrums of explosive super-inflation in its fiat-currency has been time and again seeking out solutions for its problems with cryptocurrency. In the latest development, the President of Brazil, the much troubled Jair Bolsonaro snatched desperately at available lifeboats, by appointing for the very first time as the head of the central bank a financial wizard with cryptographic expertise.

Senate’s approval critical

However, the nomination of the head of the central bank will have to be validated or approved by the Brazilian Senate.

The message of the appointment of the expert, Roberto Campos Neto, is loud and clear- any which way, Brazil will tread the unknown path and attempt to bring about financial balance by using cryptocurrencies to its advantage. Yet in its nascent stages of development and mass adoption, Brazil is perhaps one of the largest economies, in any part of the world, to experiment on such a large scale the adoption of cryptocurrencies as the national currency.

In order to seek approval from the Senate members directly, Bolsonaro made an open appeal to the legislative members with this letter by the crypto proponent expert

“I have studied and dedicated intensely to the design of what will be the financial system of the future. I participated in studies on blockchain and digital assets. One of the contributions I hope to bring to the Central Bank is to prepare the institution for the future market, where technologies advance exponentially, generating more rapid transformations”

Neto’s appointment follows that of his esteemed predecessor – Ilan Goldfajn who propelled Central Bank who has already set the wheels of motion in the Brazilian economy towards cryptocurrencies.

A blockchain is a platform on which one of the most ambitious plans of the government are executed – The Information Integration Platform for Regulators (PIER). Despite the multiple positive moves to adopt blockchain in the country, the biggest challenge has been the resistance to adopt digital currencies. There has been criticism that bitcoin is a highly unstable asset and loaded with risks.

The attempt is therefore about helping financial service providers provide technology breakthroughs, which will lead Brazil away from the complexities and the limitations of fiat-currencies.