This Brazilian Digital Money Is Claimed To Be Killing Crypto Except For Bitcoin And Ether

Brazil's CBDC is claimed to be a big challenge for crypto assets. (Photo; Doc. Coin68)

JAKARTA - President of the Brazilian Securities and Exchange Commission (CVM), Joploy Pedro Nascimento, expressed his views on the impact of the Brazilian central bank's (CBDC) digital currency, the Drex, on the crypto industry.

According to him, the draw will reduce the attractiveness of smaller cryptocurrencies, while established cryptocurrencies such as bitcoin and ethereum will continue to exist in this country.

Hal ini disampaikan oleh Nascimento dalam sebuah gempauan keuangan, di mana juga membahas peran CVM dalam mengatur ekonomi kripto. Nascimento menyatakan bahwa, menurut pendapatnya, drex akan membunuh banyak mata uang kripto karena beberapa faktor.

"I'm not talking about Bitcoin, but the drift will reduce the attractiveness of smaller cryptocurrencies," Nascimento said.

This is because the Drex aims to include many of the advantages offered by cryptocurrencies today, such as smart contract programming capabilities and interactions with existing structures because of their origin compatible with the Ethereum blockchain. Drex is also reported to be integrated with the speed and practicality of distributed ledger technology (DLT). According to a previous report, the Drex is expected to launch next year.

US SEC Criticism

Nascimento also criticized approaches made by the US Securities and Exchange Commission (SEC) that used lawsuits as a tool to regulate the crypto industry. He hopes the SEC realizes that their approach has deviated from their initial mission to protect investors.

"Every time humans try to stop innovation, they always fail. I understand that we have to look at opportunities in new things and try to bring these new things into the market," said Brazil Securities and Exchange Commission (CVM) chairman Pedro Nascimento.

Nascimento reveals other solutions instead of suing the crypto industry as the SEC does. According to him, crypto industry players should be well directed so that cryptocurrencies are not used for illegal activities including money laundering.

Finally, he claimed this opinion was shared by important figures in the Brazilian government, including Ricardo Leal, president of the Financial Activity Control Council (COAF), and Executive Secretary of the Ministry of Economics Dario Durigan.