Brazil will work with private allies in its digital currency

The Central Bank of Brazil (BC) selected nine companies as allies to work together on the development of its digital currency, CBDC, where some decentralized finance (DeFi) platforms such as Aave, the Brazil-based digital asset exchange Mercado Bitcoin and the financial entities Santander Brasil and Itaú Unibanco.

Other selected partners include the Brazilian banking federation (Febraban), German payments company Gieseck+Devrient, and Brazil-based banking service Tecban and its partner Capitual. One of the projects includes the collaboration between Brazil’s Visa, Microsoft and blockchain firm ConsenSys. As well as Vert, the software services company, Digital Asset and the management consulting company, Oliver Wyman.

After accepting approximately 50 project proposals from different companies from Brazil, Germany, USA, Israel, Mexico, Portugal, the United Kingdom, and Sweden, the central bank decided to select nine allies to execute the project that will aim to create its digital currency, CBDC, according to what was expressed in a press release released by the official entity.

The financial entity highlighted that it is evaluating use cases for a digital currency and its technological feasibility. “Given the large number of projects of relevance and interest for the development of the real digital initiative, the selection process sought a balance between the diversity of the portfolio of proposals submitted to the laboratory and the need for detailed monitoring of the selected projects.”

The projects were selected by the Brazilian central bank for the implementation phase, estimated to start on March 28 and remain until July 27 of this year.

Brazil is a pioneer in the region’s crypto market

The most important economy in the Latin American region, through its official financial entity, announced last November 2021 that it had started the pilot test to create its digital currency, which would be backed by the Brazilian real (BRL) and the culmination of the project was scheduled for 2024.

It is important to note that “Brazil has become the region’s pioneer in the field of digital assets.” The mayor of the city of Rio de Janeiro, Eduardo Paes, plans to invest 1 % of the treasury in Bitcoin, while the assembly members work on the approval of laws and regulations that allow regulating the use of cryptocurrencies in favor of the development of the sector in the country.

As will be recalled, the Senate Economic Affairs Committee (CAE) recently passed a bill that has the purpose of regulating the crypto market, and it is up to the Senate to discuss and vote on the legislative proposal to regulate cryptocurrencies. In 2021 Brazil was the first Latin American country to launch a Bitcoin ETF.

M.  Rodríguez

Source: diariobitcoin.com