Brazil Plans to Release An IPO For Freshly Established Digital Bank

By Daniel T. | October 22, 2020

Brazil is reportedly planning to become a member of the Organization for Economic Cooperation and Development (OECD), along with preparing to release an IPO for the freshly-built digital bank of Caixa Econômica Federal.

Specifically, Caixa Econômica Federal reportedly set up a digital bank amid the global health crisis, to assist the authority in distributing financial aid to roughly 64 million people in Brazil. Guedes’s remarks were made at the Milken Institute Global Conference, when he revealed the bank is spending efforts in getting new investors to the nation. 

The minister has reportedly placed his faith in the freshly built crypto bank by the state-owned Caixa Econômica Federal, which is included in  Guedes’s privatization projects.

The Brazilian government has reportedly authorized a significant sum of monetary financial support to fight the impact of the global health crisis, with the biggest sum dedicated to emergency payments for low-income Brazilians, with Caixa taking up the key role in determining beneficiaries and paying benefits.

Guedes reportedly disclosed that Caixa’s client base has been the factor for the appearance of an IPO for the crypto bank. 

“We digitalized 64 million people. How much is a bank with 64 million people worth? Low-income people, but people that were (bank-registered) for the very first time, so they are going to be loyal for the rest of their lives.”

“If the private sector abroad wants to pay extra money to have a guarantee […] we can give it to them for a certain price. If they want it, we’ll provide it.” Guedes further disclosed that the Central Bank will make sure risks to foreign investors are reduced.

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