Opportunities And Challenges Faced by Brazil's Issuance of Digital Currency——Tianya Ge
For Brazil, issuing digital currency faces both opportunities and challenges. When issuing digital currency, not only do they face various technical, financial, and economic environmental issues during the issuance process, but they also face various problems such as machine maintenance, data restoration, daily operation, and customer service after the issuance. Therefore, for Brazil to issue digital currency, while seeing the opportunities brought by digital currency, the first challenge it needs to face is this kind of challenge. This challenge not only comes from within the Brazilian government but also from external sources.
Internet and Bank Fraud
The first issue that the Brazilian government needs to face when issuing digital currency is the cybersecurity issues it needs to face after issuing digital currency. According to data, it is expected that the economic losses caused by cybercrime will reach $10 trillion by 2025. (2023）The first challenge that must be considered when issuing digital currency is the security issue of the network. As the world gradually becomes an information age, more and more information and personal privacy become transparent. This is a significant challenge for banks and governments to issue digital currencies. While conducting normal business operations, it is also important to closely monitor network security. To prevent information leakage and online fraud. With the gradual advancement of artificial intelligence in current technology, online fraud has become increasingly diverse. It is not just a scam from humans, but also a scam generated by artificial intelligence if a digital currency is issued. This makes fraud more difficult to predict and prevent. Therefore, for the Brazilian government and banks, identifying and preventing fraudulent information, improving the system's security index, and enhancing the cybersecurity awareness of relevant personnel are the primary issues faced by Brazil after issuing digital currency.
LIFT laboratory and personnel allocation issues
The LIFT laboratory was jointly created and initiated by the Central Bank of Brazil and the National Association of Central Bank Servers. The purpose of establishing this laboratory is to solve various technical problems encountered in the development of Brazilian digital currencies and provide support and reference in terms of technology. When developing digital currencies, Brazil had to postpone the issuance due to technical issues. Meanwhile, in the process of developing digital currencies, workers' strikes were triggered due to personnel allocation issues. This is another issue that Brazil encountered when issuing digital currency, as insufficient funds led to internal personnel disharmony, ultimately leading to a serious problem of workers' strikes. When we are conducting technological research and development, financial support is a fundamental element for the smooth progress of the project. During the research and development process, being able to coordinate the work of internal personnel and smoothly apply funds to the salaries of technology and personnel is the key to successfully completing the project. This is related to the current economic situation in Brazil. Due to inflation, workers want to receive higher wages and bonuses. (Lan, 2023)
Opportunities after the issuance of digital currency
After the issuance of digital currency in Brazil, the first beneficiaries are the financial and economic sectors. After the issuance of digital currency, it will greatly reduce the manufacturing and issuance costs of physical currency. Issuing digital currency is no longer just about simple physical currency transactions, it can support online transactions. This greatly increases the convenience of the payment market. At the same time, when conducting digital currency transactions, it enables the government to clearly check the flow and direction of each fund. It can make every transaction more transparent and accurately control the economy and financial markets. This approach greatly reduces the economic losses caused by economic crimes. It can minimize the harm caused by crime and even avoid the occurrence of economic crimes. This greatly increases the safety index of the economy and financial markets. The government is also able to make timely adjustments and controls based on the current economic situation. Arrive at the location of the problem as soon as it occurs and take corresponding measures in a timely manner.
For the Brazilian people, the issuance of digital currency, it brings convenience to life. Firstly, there is no need for additional handling fees in payment projects. In today's online banking, if people want to perform some payment operations, they need to pay the bank for certain procedures and even need to personally go to the bank to handle them. But after issuing digital currency, there is no need to worry about this issue at all. And digital avoidance also increases the security of payments. It can enable people to complete payment and transaction processes more safely and conveniently.
Issuing digital currency is bidirectional. When the government and banks face related challenges and difficulties, the same digital currency has also brought more convenience and security to people and the financial and economic fields than traditional physical currencies in the past. Therefore, the Brazilian government and banks should actively face these difficulties and challenges. In this information age, we can better drive the country's economic development and enhance people's happiness index.
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