The Central Bank of Brazil recently underscored the transformative potential of tokenization and “open finance” as core components of the future financial system during a panel with the International Monetary Fund (IMF) and the World Bank.
Roberto Campos Neto, President of the Central Bank, remarked that the synergy between tokenization and open finance had been largely underestimated.
Campos Neto explained that open finance, which enables secure sharing of data, products, and services among regulated entities with user consent, fosters innovation and competition. He emphasized that integrating tokenization with open finance can create a unified financial environment with enhanced programmable payments and transactional efficiency.
Campos Neto noted a shift in how banks could use tokenization for greater efficiency, stating, “Banks will gradually transition from account-based balance sheets to token-based systems, allowing for improved risk management, collateral handling, and funding.”
Tokenization and stablecoins, key pillars of the crypto ecosystem, are slated for regulatory consideration by the Central Bank in 2025. Campos Neto has previously praised digital assets, highlighting their potential for substantial efficiency gains in payments, credit, and capital markets.
The Central Bank of Brazil continues to explore cutting-edge technologies such as artificial intelligence (AI) in Drex, its ongoing central bank digital currency (CBDC) initiative, as part of its commitment to financial innovation.