Brazil's Central Bank Advocates for Tokenization and Open Finance in Future Financial Systems
10 months ago

The Central Bank of Brazil has expressed robust support for tokenization and open finance as integral components of the future financial ecosystem. During a panel report presented by the International Monetary Fund (IMF) and the World Bank, the bank's president, Roberto Campos Neto, illuminated the often underestimated intersection between these two transformative elements.

He emphasized that tokenization facilitates programmable payments and the incorporation of open finance as fundamental building blocks within a unified financial environment. This approach paves the way to explore the potential of constructing a comprehensive financial market in a singular setting. Campos Neto emphasized the significance of tokenization concerning bank balance sheets and enhancing operational efficiency.

He elaborated on how banks will gradually transition from traditional balance sheets based on accounts to a more innovative token-based perspective. This shift is poised to significantly bolster efficiency and productivity within banking operations. Tokens, he further noted, present a myriad of advantages for banks, particularly in managing risks, collateral, and financing, thus promising a more resilient financial framework..

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