Companies on Board for Brazilian CBDC Trial
In an upcoming pilot project of the Brazilian Central Bank’s digital currency (CBDC), both domestic and international corporations are set to participate. The initiation of the participants’ inclusion in the digital real platform will commence by mid-June 2023, as managed by the Central Bank of Brazil.
On May 24, the final list of participants for the CBDC pilot project was released by the Central Bank. Out of 36 applications submitted by individual corporations and consortia, accounting for over 100 institutions, 14 were chosen as participants. Some of these participants embody groups of companies. For instance, Microsoft, a tech behemoth from the US, aligns with Inter, a Brazilian bank, and Sao Paulo-based IT firm 7COMm.
Additional participants include Visa, Spain’s Santander bank, and predominantly Brazilian financial institutions such as Itaú Unibanco, BTG Bank, Bradesco, among others.
The Pilot’s Focus: Privacy and Programmability
The current stage of the digital real pilot will have the Central Bank test the privacy and programmability features of its platform. This will be done through a single application: a delivery versus payment (DvP) protocol designed for federal public security.
The Brazilian CBDC pilot was officially launched in 2022. The digital real’s value will be tied to the national fiat payment system, much like Bitcoin, with a predetermined supply and a capped minting limit.
Brazil’s Crypto Appeal
With its population of 214 million, Brazil, Latin America’s largest nation, continues to be a hotspot for international crypto firms. In January, Binance and Mastercard joined forces to introduce a prepaid crypto card in Brazil. From March onwards, Coinbase has collaborated with local payment providers to facilitate crypto transactions and allow deposits and withdrawals in local currency. On May 19, Latam Gateway, Binance’s payment provider in Brazil, was awarded a license by the Central Bank.
