- The Brazilian CBDC pilot project has attracted participation from national and worldwide companies.
- Over 100 institutions have been considered for participation.
- The pilot phase has focused on testing the privacy and programmability features of the CBDC.
The next pilot project for the monetaryย authority digitalย currency (CBDC) in Brazil will witness the active participation of both domestic and international enterprises. Banco Central do Brasil, the nationโs monetaryย authority, has scheduled the inclusion of participants onto the digital real platform to commence in mid-June of 2023.
On May 24, the monetaryย authority publicly disclosed the definitive roster of CBDC pilot participants. Out of 36 submissions from individual corporations and consortia, 14 entities were inย theย end chosen toย engage, with certain participants representing conglomerates.ย
Tech Giants and Banks Collaborate in Brazilโs Digital Real Pilot
Notable examples include Microsoft, the American tech behemoth; Banco Inter, a Brazilian financial institution; and 7COMm, a digital technology company.
The other selected participants are Visa, Santander, and numerous Brazilian banking establishments such as Itaรบ Unibanco, BTG Pactual, and Banco Bradesco.
In the ongoing phase of the digital real pilot, the monetaryย authority intendsย to evaluate the privacy and programmability functionalities of its platform through a specific use case: a delivery versus payment protocol for federal public securities.
Binanceย Cryptoย exchange, Mastercard, and Coinbaseย Cryptoย exchange Partner with Brazil
The official notice of the Brazilian CBDC pilot tookย place in 2022. The digital real, whose value would be linked to the national fiat currency, the real, is designed to have a fixed supply and will be gradually minted over time.
As the largest country in Latin America, boasting a population of 214 Million, Brazil persistsย to captivate worldwide digitalย currency companies.ย
In January, Binanceย Cryptoย exchange and Mastercard forged a partnership to introduce a prepaid cryptocurrency card within the country. Since March, Coinbaseย Cryptoย exchange has collaborated with local payment providers toย support digitalย currency purchases and enable deposits and withdrawals in the native currency.ย
Furthermore, on May 19, the monetaryย authority granted Latam Gateway, the payment service provider for Binanceย Cryptoย exchange in Brazil, a license to operate as a payment institution and electronic money issuer.
The other side
- The participation of worldwide corporations in the Brazilian CBDC pilot project may overshadow local enterprises and hinder domestic innovation.
- The pilot projectโs focus on a delivery versus payment protocol for federal public securities raises questions about exploring a broader range of use cases.
- The CBDC pilotโs effectiveness in addressing the financial inclusion challenges of marginalized communities remains uncertain owingย to barriers such as limited access to digital infrastructure and technological literacy.
Why This Matters
With renowned enterprises venturing into the monetaryย authority digitalย currency realm, whichย shows a growing understanding and adoption of digitalย currencies by influential players, potentially paving the way for wider acceptance and integration of digitalย currencies in the broader market.
To learn more about how Rippleโs CBDC platform is unlocking financial inclusion worldwide, read here:
New Ripple CBDC Platform: Unlocking Financial Inclusion Worldwide
To stay updated on Governor DeSantis and Kennedy Jr.โs united opposition to CBDCs, read here:
DeSantis & Kennedy Jr. United in Opposition to CBDCs
