The Lithosphere cryptocurrency platform developed by KaJ Labs partners with the Central Bank of Brazil on the country’s digital real roll out.
Brazil is the latest country to look at digital currency as legal tender. The Lithosphere cryptocurrency platform developed by KaJ Labs, a Seattle blockchain firm, initiated discussions with the Central Bank of Brazil to partner on the country’s digital real roll out.
Brazil has been exploring central bank digital currencies (CBDC) since 2020. CBDCs are the digital version of a nation’s fiat currency that’s issued by its central financial authority. Banco Central do Brasil (BCB) presidents indicated that the central bank is “making progress” on plans to digitalize the Brazilian real and could release Central Bank digital currency as early as 2022, provided the infrastructure and necessary conditions for implementing digital currency are met.
The country‘s PIX instant payment system launched in Nov 2020. The PIX system improves the speed of interbank payments and makes them less expensive for individuals, businesses and government entities. PIX allows users to transfer and receive payments through a smartphone in seconds, even on non-working days. It has the potential to form the backbone of a larger CBDC, fostering financial inclusion, increased security, convenience, efficiency, innovation and financial tools for those without accounts. traditional banking.
Roberto Campos Neto, president of the Central Bank of Brazil, indicated that the central bank was making progress and could release Central Bank digital currency as early as possible, provided the infrastructure and necessary conditions for implementing digital currency are met.
According to announcement, in this CBDC trials, informed: “Lithosphere will assist with distributed ledger technology (DLT), tokenizing the bonds and the wholesale payment token using its custom blockchain interoperability solutions. The trial with the Central Bank of Brazil will explore both forms of tokenized money to settle debenture or bond transactions, to be issued, settled and cleared on a permissioned blockchain.”
Even though, no such plans are under consideration in the government body, the central bank of the country is committed to launch a digital version of national fiat currency Real. But even before a CBDC, the bank has launched an instant payment PIX in November 2020 that provides 24/7 payments in up to 10 seconds via mobile apps, internet banking and ATMs. The PIX system can also become a backbone of upcoming Brazilian CBDC.
