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Investor Presentaiton

Annual Report AR 2022 SUMMARY WHO WE ARE OUR STRENGTH AND OUR RESOURCES OUR RESULTS The Digital BRL Agenda BC# Since 2018, the BCB has been conducting actions related to central bank digital currencies to monitor and promote the digital evolution of the Brazilian economy. The idea is that, when launched, the Digital BRL will become part of people's daily lives, being also used by those who use bank accounts, payment accounts, cards, or cash. It is important to emphasize that the objective of the Digital BRL is not to replace the conventional BRL in the everyday life of Brazilians. In 2022, the BCB started the evaluation of use cases and technological feasibility of the Digital BRL, through the LIFT Challenge Digital BRL. The initiative, led by the BCB and Fenasbac, selected technological projects for the development of minimally viable products (MVP). Based on the LIFT Challenge results, the BCB may move forward to a testing phase in 2023. The new digital currency can be used for financial transactions settlement, fostering financial inclusion and the emergence of new businesses. The platform of the Digital BRL will allow access to financial services at banks and other financial service providers. Based on guidelines released in 2021, the Digital BRL Initiative foresees the creation of a market infrastructure, under the governance and regulation of the BCB, where technologies such as programmable money and smart contracts will be available for new business models. The use of Digital BRL for retail purposes was initially foreseen. There is a focus on technology to foster innovative business models that can provide greater efficiency to the Brazilian economy. As for the online operation, the Digital BRL must be integrated with current payment systems, allowing operations such as payments in points of sale or transfers of funds between its users. The BCB thus seeks to promote the adoption of efficient and secure technologies, while increasing the population's access to cheaper financial products and services. The creation of the Digital BRL will be another step in the direction of a technological and inclusive financial system. 82
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