Former Central Bank President Discusses Bitcoin and Cryptocurrencies
The Central Bank of Brazil (BCB) is producing a series of conversations between the current BCB president, Gabriel Galípolo, and former presidents of the bank. Episode 10 featured Roberto Campos Neto.
Campos Neto highlighted that governments have historically mismanaged their currencies, lacking accountability to citizens, which led them to seek cryptocurrencies as an alternative.
He believes this movement isn’t limited to individuals, as central banks themselves will eventually adopt these assets.
Roberto Campos Neto served as president of the Central Bank of Brazil from 2019 to 2024. During his tenure, he focused on launching the Drex and advocated for central banks to have exposure to cryptocurrencies.
When asked by Gabriel Galípolo about how the role of the Central Bank has changed over the past 60 years, RCN emphasized technology.
“Technological innovation, especially in information, has driven the marginal cost of accessing money to almost zero. It’s just a few clicks on a phone,” Campos Neto explained. “The ability to trigger a bank run based on a rumor on social media, or the rapid spread of news about a bank’s poor performance, has significantly changed banking regulation.”
He noted that companies outside the traditional banking system have begun offering similar services, pushing banks to modernize their offerings.
“Cryptocurrencies, crypto assets, and stablecoins have accelerated this process, forcing banks to reconsider their approach, even with some resistance. Banks will need to engage more with decentralized finance (DeFi).”
Campos Neto stated that the past six years have brought more changes than the previous 20, and this trend will continue.
He also mentioned Bitcoin, suggesting it could be viewed as digital gold.
“In terms of monetary policy, the fact that some credit is outside the traditional system, coupled with digitalization and questions about the best store of value, raises the question: Can we have digital property? This is a key topic being discussed in the American Congress regarding Bitcoin,” he commented.
“Governments globally have mistreated their currencies in recent years, with excessive debt issuance and a lack of accountability to currency holders. This has undermined the credibility of fiat currencies, driving the movement towards digital currencies.”
Campos Neto concluded by highlighting advancements in the United States, seeing it as the beginning of a race to merge the digital and cryptocurrency worlds, and a move towards traditional banks embracing this space.
“Strategies to integrate stablecoins with prepaid cards or other methods of monetizing digital assets will be part of banks’ future strategies,” he concluded.
In other parts of the conversation, Roberto Campos Neto discussed his entry into the BCB, his plans at the time, and what advice he would give to his younger self.
Previous videos in the series, available on the Central Bank’s YouTube channel, feature Gabriel Galípolo in conversation with Ilan Goldfajn, Alexandre Tombini, Gustavo Franco, Armínio Fraga, Gustavo Loyola, and other former BCB presidents.
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