Bolsa Família

Bolsa Família in Digital Real? Caixa's clarifications leave the population intrigued

Published on 29/07/2023 6 min read

What does the Digital Real project mean?

Nowadays, digital assets are a technological, convenient, and functional way to carry out financial transactions worldwide. With a major contribution to global GDP, the so-called central bank digital currencies (CBDCs) are gaining recognition.

Therefore, most central banks are analyzing or experimenting with these digital currencies in their economic policies. Therefore, Brazil is no exception, and the Digital Real project has become a possibility since 2020.

In this way, the Central Bank launched a study on how this form of currency could operate in the economy. Still that same year, there was a forum to collect consumer feedback and several webinars for discussion.

Now, a consortium has been formed between the Central Bank, Caixa Econômica and Microsoft to build the systems that will manage the Digital Real. The experimentation phase is expected to begin in September, to assess security and transactions in real-world situations.

In addition, if you want to learn more, the Central Bank has guidelines to explain to consumers how the program works. The page also updates users on the progress of the project and the consortium.

Benefits of including the Digital Real

Thus, it is essential to understand the main benefits of using Real Digital in the Brazilian economy. According to the Central Bank, there are some crucial points in the creation and development of this transaction method:

Easier payments, without the need for a physical presence;
Promotion of competition in the market;
Incorporation of technological innovation into the financial market;
Inclusion of the population in digital services.

In addition, one of the main advantages is improved financial efficiency and retail payments. The COVID-19 pandemic highlighted the importance and need to digitize payment methods for the population.

Bolsa Família can be paid with Real Digital

With the beginning of the consortium, there was a statement by the president of Caixa Econômica about using Real Digital to pay Bolsa Família. According to her, the institution is present in 99% of Brazilian municipalities, with 155 million customers.

In this regard, it is possible to use the popular bank to test the efficiency of the financial methods. Therefore, due to its scale and economic involvement, it is a great way to verify whether the pilot project will be successful.

Caixa Econômica makes a statement about the project

The president of Caixa Econômica Federal, Maria Rita Ferreira, gave an interview about the consortium this week (26). Thus, according to her, the Central Bank's objective is to combine issues of social inclusion and the digitalization of national currencies.

According to her, it is perfectly possible to make payments not only for Bolsa Família, but also for various other social benefits using the asset. Therefore, it is likely that, after the testing phase, other benefits will also be included in the project.

In some way, Bolsa Família would also serve as a prototype for adding other benefits to the Real Digital project. It would function as a model, with the dynamics and acceptance of the program's beneficiaries being verified.

Property financing with the asset

Another crucial sector for the asset is the mortgage financing sector, which is also receiving special attention from the Central Bank. According to Caixa's president, the consortium is considering using the digital currency to purchase goods, as a product of this project.

In this way, the intention is to pave the way for other institutions to start using the digital currency in the real estate market. After all, the institution is currently the segment's leader in financing, setting a trend among other banks.

However, this is the proposal of the consortium between Caixa, the Central Bank, and Microsoft. Only after the system development phase will it be possible to include the products that will be distributed through the project and the introduction of the Digital Real into the economy.

Frequently asked questions about the project

So, if you are still unfamiliar with the Digital Real project, take the opportunity to check the frequently asked questions we have compiled. After all, it is important to understand how this payment method will work and how it may affect your financial life.

How much is 1 digital real worth?

Currently, there is no difference between the value of physical and digital money. That is why the currency has the same value: one digital real is equal to one traditional real. Therefore, it differs from other digital payments, which have values different from ordinary money.

When will the payment method become valid?

The project has been under study since 2020, including a public forum and webinars to understand the population's reception. In addition, in May 2021, the regulatory rules appeared for the first time and are still in the final stage of study.

Therefore, the testing phase for implementing this currency will begin in September, according to the Central Bank. Thus, the security of the platforms that will carry out the simulated transactions and operations will be evaluated before the project is actually implemented in Brazil.

Does this type of payment work like cryptocurrency?

No, the digital real is not like a cryptocurrency and has different forms of creation, regulation, and use. Thus, the concept is to be an alternative public and transactional currency, with a direct link to the Central Bank of Brazil

Furthermore, if you found value in this publication and would like to delve deeper into topics such as the economy and social assistance, feel free to explore our other articles. This way, every day you will have access to a range of up-to-date information about the most relevant events in the financial world, both in Brazil and internationally.