Cryptocurrency networks are "much more important" than assets such as bitcoin or ether and could bring "huge value" to the financial system, Banco Central do Brasil President Roberto Campos Neto said.

"Regulators [worldwide] are too concerned [with] the asset itself. I think the network is much more important," he said at Banco BTG Pactual SA's CEO Conference in an interview with BTG CEO Roberto Sallouti Feb. 22.

This commentary from the central bank chief comes as the institution is reportedly moving forward with its own digital currency project, which is expected to run on blockchain. It is still in the early stages. The bank launched a test lab months ago to begin exploring use cases for a virtual version of the Brazilian real, which is expected to reach the market by the end of 2022.

Campos Neto's statement comes as the banks seeks to enhance competition in the financial industry, which has typically been rife with bureaucracy and regulation. The central bank is implementing the final stages of open banking in the country and launched the well-received low-cost payment system PIX in 2019.

At the conference, Campos Neto underscored the relevance of cryptocurrency networks. "Platforms that are being created have a huge value," he said, adding that the networks are going to be "beneficial to the financial system."

Campos Neto also underscored the relevance of designing a regulatory environment that fosters technology innovation but does not create risks for the traditional financial system. "The innovation process leads to companies being created that end up using these technologies in the financial market but in perimeters not regulated by the central bank," he said.

Local newspaper Folha de S. Paulo reported the central bank is speeding up cryptocurrency regulation as fraud and scams associated with bitcoin increase in Brazil. Regulation is expected to be sent to Congress during the first quarter of 2022, the newspaper reported.