Former Central Bank of Brazil director Tony Volpon recently announced an interesting idea—launching a stablecoin called BRD, directly backed by Brazilian government bonds. What is the core selling point of this plan? Holders can earn yields comparable to the Brazilian real, approximately around 15%.

From a policy perspective, the starting point of this idea is to boost demand for government bonds, thereby helping the Brazilian government reduce financing costs. In a high-interest-rate environment, how to make government bonds more attractive? By linking them to a stablecoin, it provides investors with a new way to hold assets—combining the convenience of stablecoins with high-yield returns. This hybrid approach is indeed rare in emerging markets. Of course, whether this plan can be successfully implemented and how to address risk management issues still require further observation.