An interesting chapter in the journey of financial digitization of brazil is about to begin, with the impending pilot project of central bank digital currency (CBDC) from Brazil which attracts the participation of a range of local and international companies. Led by the Banco Central do Brasilthe project is scheduled to begin in mid-June 2023.
Global giants join the fray
From the initial 36 applications made up of individual companies and consortia, a final list of 14 entrants was compiled by the central bank on May 24. Among those elected are important players in the global technology and financial sector, such as Microsoft, Visa And Santander. The list of participants also includes several Brazilian banking institutions, namely Itau Unibanco, BTG Pactual And Banco Bradesco. Each participant or consortium brings a unique blend of expertise and resources, solidifying the fundamental structure of the project CBDC.
Decrypt driver functionality
As the pilot project takes shape, the Central Bank of Brazil will thoroughly test the privacy and programmability features of its platform CBDC. The use case that will be deployed for this test phase is the delivery versus payment protocol for federal government securities, thus addressing the crucial aspect of transactions secured. This testing phase will provide invaluable insight into platform performance and possible areas for improvement before a wider rollout.
The arrival soon of Real Digital?
Announced in 2022, the project of CBDC of Brazil aims to establish the real digitalpegged to the national fiat currency and mint au thread time with a fixed offer. It reflects Brazil’s progressive stance in favor of adopting the global crypto wave, a sentiment echoed by interest asset global crypto businesses in the region. Binance And MasterCard launched a crypto prepaid card in the country, while Coinbase enabled crypto purchases and transactions in local currency, through partnerships with local payment providers. In addition, the central bank recently granted Latam Gateway, the payment provider of Binance in Brazil, a license to operate as a payment institution and issuer of electronic money.
As the largest country in Latin America, Brazil is poised to lead the region in this digital financial revolution. The successful implementation of the CBDC will cement its status as a preferred destination for crypto businesses and could potentially influence other nations including BRICSto embark on similar projects.
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