Tim Jacklich, senior crypto research analyst at Tribal Credit: “Brazil’s CBDC initiative could bring efficiencies to the country’s payments infrastructure, but the digital real will remain largely invisible to consumers for now. According to the central bank, the digital real has been designed as a ‘wholesale CBDC,’ meaning that only financial institutions will interact with the CBDC ledger directly. This contrasts with China’s e-CNY and the Bahamian Sand Dollar, both of which enable direct retail interactions with the digital currency. At least in its first iteration, Brazil’s CBDC would be used mainly for interbank settlement. As a result, the digital real is not likely to compete with existing payment methods such as Pix, instead serving to improve the plumbing of the Brazilian banking system. Interestingly, the central bank reportedly plans for the CBDC ledger to enable the tokenization of other types of financial assets, including government bonds. This suggests…”