• The Brazilian central bank has announced a pilot project to launch its digital currency, the Real Digital.
• Visa and Mastercard have been selected as participants in the CBDC initiative, alongside 14 other entities from diverse financial sectors.
• The goal is for the CBDC to be widely adopted by 2024 and Brazil has already explored cryptocurrency regulations.
Brazilian Central Bank’s Digital Currency Pilot Project
The Brazilian central bank has announced its plan to roll out a pilot project of its digital currency, the Real Digital (CBDC). Banco Central do Brazil received an overwhelming response with 36 proposals expressing interest in taking part in the Piloto RD from both individual institutions and consortia of entities, representing over 100 institutions from different financial backgrounds. Amongst these were Visa and Mastercard, as well as other Brazilian banking institutions such as Itaú Unibanco and BTG Pactual.
Goals Of Digital Real Platform
The official announcement of the CBDC pilot took place in 2022 with key details of the project revealed. The digital real will be pegged to the national fiat currency, the real, with a fixed supply which will be gradually minted over time. Fabio Araujo, the project coordinator for the bank’s CBDC initiative has stated that their goal is for it to be adopted by 2024 by a wide population base.
Cryptocurrency Regulations In Brazil
Brazil is no stranger to cryptocurrencies and has explored creating regulations around them. In February 2021 Ministério Público Federal confirmed they were actively formulating provisions to facilitate legal processes when confiscating digital assets while Binance unveiled a partnership with MasterCard earlier this year too. This suggests that Brazil is opening up more to cryptocurrencies and this partnership between Visa/Mastercard and BCB’s CBDC project serves as testament to this fact.
Visa & Microsoft Join Forces For Pilot Project
Visa and Microsoft have joined forces for BCB’s Brazilian CBDC pilot project which kicks off mid-June 2023 onboarding participants onto its platform. This significant collaboration between two major companies highlights their commitment towards bringing blockchain solutions into fintech projects on an international scale whilst elevating customer experiences across countries like Brazil who are embracing such initiatives wholeheartedly.
Conclusion
The arrival of Visa & Microsoft joining forces with BCB’s Brazilian CBDC pilot project conveys how open countries like Brazil are becoming towards cryptocurrencies whilst exploring ways on how best to regulate them but benefit from their advantages at same time too – such as improved customer experiences within finance technology projects globally!