Brazil’s Securities and Exchange Commission (CVM) announced that the country’s central bank’s digital currency (DREX) will contribute to the disappearance of cryptocurrencies in the local market, with the exception of bitcoin.
Commission head João Pedro Nascimento (João Pedro Nascimento) is confident: the introduction of the state-owned stablecoin will negatively affect the acceptance of little-known cryptocurrencies. The central bank’s digital currency will use smart contracts and this will increase the speed and efficiency of transactions, CVM expects. The official emphasized: technological innovation needs to be regulated, but it should be done in a way that does not suppress, but rather develops innovation. The lack of regulation of cryptocurrencies creates a shadow market whose participants will be able to launder money and evade taxes without hindrance.
“Every time people have tried to stop innovation, they have failed miserably