The Central Bank of Brazil has taken a significant step towards financial inclusion by launching its Central Bank Digital Currency (CBDC) pilot project.

According to Fabio Araujo, the coordinator of the project, the digital real is expected to be widely used in 2024 after the completion of the pilot program.

The CBDC is expected to be a blockchain-based payment system that supports retail transactions and will be backed by customer deposits in their bank accounts.

This will enable banks to remain in the CBDC matrix and not lose their credit source. Araujo believes that this could reduce the cost of credit and improve the return on investment, as well as democratize access to the market and offer new services.

While Brazil is not alone in piloting CBDC projects, Representative Tom Emmer recently introduced a bill to stop the issuance of a digital dollar in the United States.

On the other hand, India has onboarded 50,000 users and 5,000 merchants in its retail digital rupee pilot since it began in December 2022.

Meanwhile, Thailand has announced tax breaks for companies that issue digital tokens for investment purposes, which could cost the government 35 million baht ($1 billion).

Rachada Dhnadirek, a government spokesperson, stated that the country could see investment token offerings worth 128 billion baht ($3.71 billion) over the next two years.