Roberto Campos Neto: Central banks' digital currency has privacy issues

“The main question was how to ensure nationwide adoption of the digital real without jeopardizing the privacy of settlement participants. The dilemma is that there is no solution yet: how to ensure CBDC decentralization, programmability and privacy at the same time. Because digital registries and blockchain technologies are good in terms of transparency and speed, but have privacy issues,” explained the President of the Bank of Brazil.
Campos Neto clarified that in terms of technology, the scalability problem is not yet solved. However, the head of the Central Bank makes optimistic predictions: a way out will be found in the near future. There are several experienced options for solving scalability problems based on the Digital Ledger privacy platform: added the head of the Central Bank of Brazil.
Campos Neto stressed the importance of integrating tokenized digital market assets into the operations of traditional banks.

“The Central Bank of Brazil does not intend, as some countries do, to isolate banks' balance sheets from digital assets. On the contrary, we think the next step in the development of the national banking system should be tokenization. Banks, by understanding and embracing tokenization, will better manage the risks of crypto assets. And we believe that this evolution is inevitable,” Campos Neto concluded.
Tokenization of traditional banking instruments allows for a significant acceleration of financial institutions with lower operational costs, the Central Bank governor believes.

Translated with DeepL.com (free version)