Brazil Central Bank States Bitcoin is a Financial Innovation

Bitcoin has been seeing the worst price action for a few days now, the asset has not really moved up in terms of price, and the market cap has also been cut to half because of extreme volatility, market corrections, and the bear market hovering over Bitcoin. Despite all of this, the director for the bank of Brazil has praised the technological abilities and infrastructure of Bitcoin and has terms the cryptocurrency a financial innovation, something many have stopped stating because of the recent turmoil Bitcoin finds itself in.

CBDCs, Web 3.0 and Bitcoin

Fabio Araujo, the director for the bank of Brazil, has also praised Bitcoin for its role in the development of web 3.0 and how all of the technologies that Bitcoin and these elements share are going to be unique and a subtle asset for the modern world of finance. The development of the CBDC tokens, altcoins, and everything else that is even remotely associated with decentralization was made possible thanks to Bitcoin, says the director.

When the director praised Bitcoin as a technological revolution, he seemed distressed when talking about the monetary capabilities of Bitcoin and said that in no way, shape, or form Bitcoin could ever replace gold or other monetary standards that are being used as wealth reserves. This is because of the extreme volatility of the asset and that of the crypto market. This is why one should stay away from Bitcoin if they are looking to pour their money into something as a mode of investment, but generally speaking, from a technological point of view, Bitcoin is pure gold, according to Fabio.

DeFi and the Role of Ether

Fabio further praised the smart contract capabilities of Ether and how it has managed to transform the digital world of finance by introducing another segment in it which is decentralized finance. According to the director, both Bitcoin and Ether have potential in their own capacities, and instead of taking them as a financial reserve, people and developers should praise and take inspiration from their technical abilities, which is more important than anything else about these assets.

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