fbpx

Visa, Microsoft And Other Financial Institutions To Participate In CBDC Pilot In Brazil

The Central Bank of Brazil has recently unveiled the list of financial institutions and companies that will take part in the pilot project for its central bank digital currency (CBDC), known as the digital real. Prominent names such as Visa, Microsoft, and Santander are among the participants, demonstrating the high level of interest and support for the initiative. The selection process involved a thorough evaluation of 36 proposals from over 100 institutions representing various sectors of the financial industry, leading to the approval of 14 proposals by the Executive Management Committee.

The chosen participants for Brazil’s CBDC project include a number of domestic financial institutions, including BV Bank, Bradesco, Nubank, Pactual BTC Bank, ABC Bank, Hamsa, LoopiPay, Bank B3, B3 Digital, Banco Inter, Microsoft, 7COMm, Santander and more. With trans-global heavyweights in the ring like Microsoft and Visa, it can be inferred that there presence indicates a certain amount of priority on each company’s respective developmental roadmap.

The selected proposals will be integrated into the digital real pilot platform, which is set to commence operations in June, according to the Central Bank of Brazil. The primary objective of the CBDC pilot is to explore the advantages of a programmable multi-asset distributed ledger technology (DLT) platform that operates using tokenized assets.

The testing phase for the digital real will focus on assessing private execution, information exchange between platforms, and interoperability. This process will simulate a “delivery versus payment (DvP) protocol for federal public security between clients of different institutions, in addition to the services that make this transaction,” as explained by the central bank.

By undertaking this pilot project, Brazil aims to gain valuable insights into the potential benefits and challenges associated with a CBDC. The programmability and flexibility offered by DLT technology will be thoroughly evaluated, allowing authorities to assess the feasibility and suitability of implementing a digital real on a larger scale in the future.

The participation of major financial institutions, technology companies, and banks in the pilot project demonstrates a strong collaborative effort to explore the possibilities of digital currencies and the potential they hold for transforming the financial landscape in Brazil. The outcomes of this initiative will shape future discussions and decisions regarding the adoption and implementation of a central bank digital currency in the country.


You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More