THE EFFICIENCY OF THE BRAZILIAN PAYMENT SYSTEM AS PER THE DEPLOYMENT OF THE DIGITAL CURRENCY BASED ON DLT:CHALLENGES AND OPPORTUNITIES

Abstract

This article aims to identify and discuss the challenges andopportunities involved in the deployment of the digital currencybased on Distributed Ledger Technology (DLT) in theBrazilian Payment System (BPS), regulated by the CentralBank (CB) of Brazil. To do so we consider the following twosteps. First, a theoretical study is made concerning learnedlessons from the digital-currency deployment projects in theBahamas, the Eastern Caribbean, and China. These countriesare herein explored due to the maturity stage alreadyreached in their respective projects. Second, an interviewis conducted with specialists in the Brazilian financial market.This interview is carried out with the goal of capturingthe perception of the Brazilian market in the face ofthe challenges and opportunities that lie ahead. The finalresults obtained in this work lead to the main conclusionthat the adoption of a digital currency in Brazil cannotresult successfully without considering proper governmentactions related to motivation for its adoption by the populationand financial institutions, besides the existence ofinvestment in cybersecurity technology. Furthermore, thisdeployment is likely to bear opportunities regarding the useof technology to boost the resilience, interoperability, programmability,and security of the BPS. In this context, as amain contribution, this article provides indicators and theoreticalsubsidies that may help assess the efficiency of theBPS in the face of the deployment of digital currency. Atlast, final conclusions and future works close this article.