Important cryptocurrency news for Visa, the payments giant, which has been selected among the fourteen institutions that will be part of the Brazilian CBDC ( Monetary Authority Digital Currency) pilot project.
Below are all the details.
Visa within Brazil’s cryptocurrency project
As anticipated over, the Monetary Authority of Brazil has selected fourteen institutions to engage in the Real Digital Pilot project, the country’s Monetary Authority Digital currency (CBDC).
In particular, the list includes major local private banks such as Bradesco, Nubank, and Itaú Unibanco, likewise as Brazil’s largest public bank, Banco do Brasil, and the local stock exchange B3.
Additionally, multinational corporations such as Visa and Microsoft have likewise been chosen to participate.
The monetary authority will begin incorporating participants into the Real Digital Pilot platform in mid-June 2023. In total, the bank received 36 proposals of interest from greater than 100 institutions from different financial sectors.
These include: payment institutions, cooperatives, public banks, crypto companies, financial market infrastructure operators, and payment settlement institutions.
Brazil launches pilot test of Digital Real on the Stellar blockchain
Brazil’s Monetary Authority recently launched a pilot test of its digital currency, the Digital Real, on the Stellar blockchain tech to make digital payments more accessible.
The Digital Real pilot test is expected to replicate the success of Brazil’s instant payment system Pix, which was launched in November 2020 and quickly became one of the most trending payment methods in Brazil.
The central bank’s digital currency (CBDC) is announced and backed directly by the monetary authority. It is worth recalling that CBDCs are digital versions of fiat currencies designed for use in everyday transactions.
These are now known worldwide as governments and central banks seek to modernize their payment systems and reduce their reliance on cash.
Among the advantages of Digital Real we see, 1st and foremost, digital payments that are more accessible to people who do not have access to traditional banking systems.
In reality, reports by a World Bank report, about 45 percent of Brazilians do not have access to a bank account. Hence, Digital Real will allow these people to make digital payments without the need for a bank account.
Then, Digital Real will make payments more efficient and convenient. As we know, digital payments are quicker and cheaper than traditional payment methods such as cash and checks.
Digital Real will allow Brazilians to make instant payments without the need for intermediaries, reducing transaction costs and increasing efficiency.
In the end, security: the Brazilian CBDC will be announced and backed by the Monetary Authority, hence it will be highly secure and resistant to hacking and other attacks.
Factor that will give Brazilians more confidence in using digital payments, further increasing adoption.
Bitget and the partnership with Capitual to join the CBDC project
Cryptocurrency exchange Bitget (BGB) recently announced its partnership with fintech company Capitual to engage in Brazil’s Monetary Authority Digital currency (CBDC) project.
We see that Financial resources is among the main partners of the Brazilian Monetary Authority, which is assisting the institution in exploring CBDCs.
Additionally, Brazil and Argentina are seeing as launching a joint CBDC protocol. The duo likewise intends to develop a joint strategy for their region.
Bitget is looking to benefit from this connection and is seeking with Capitual to engage in Argentina’s CBDC efforts.
Along with playing a role in CBDC projects, the exchange likewise intends to strengthen ties with the region and extend its reach to “government-wide” initiatives.
Bitget CEO Gracy Chen commented on the exchange’s goals regarding the region, stating the following:
“Latin America is a market with strong growth potential for our business and we would like to focus more on the region and better understand the market in our future roadmap. We likewise welcome opportunities to explore CBDC projects with Financial resources and contribute on numerous fronts in the area.”