The forthcoming digital currency pilot project of the Brazilian central bank will involve both domestic and international businesses.
The list of businesses that will take part in the next pilot project for the nation’s central bank digital currency (CBDC) has been released by Banco Central do Brasil.
Both domestic and international businesses will participate in the trial, dubbed the digital real. Midway through June 2023, the central bank intends to start onboarding users to the digital real platform.
A total of 14 participants were chosen for the CBDC pilot program out of the 36 bids made by individual enterprises and consortia. Some of the participants are corporate groups, such as Microsoft, Banco Inter, and 7COMm. Visa, Santander, and well-known Brazilian financial institutions including Ita Unibanco, BTG Pactual, and Banco Bradesco are among the other noteworthy participants.
In 2022, the Brazilian CBDC, which is pegged to the real, the country’s fiat currency, was formally launched. It will be minted progressively over time and have a fixed supply. The central bank’s commitment to engage domestic and foreign stakeholders in developing and testing the functionality and possible use cases of the digital real is reflected in the choice of a wide group of participants from a range of industries.
The purpose of the pilot project is to gather useful information and determine if Brazil can successfully adopt a digital currency. The study of the digital real’s performance, security, and potential advantages for the Brazilian economy will be aided by the involvement of reputable financial institutions, technology businesses, and other leaders in the field.
Related: BIS Releases Extensive Report on Offline CBDC Payments
The Banco Central do Brasil will keep a close eye on the pilot’s results and collect participant feedback. The knowledge gathered during this testing phase will guide future work and possibly open the door for a more widespread adoption of a digital real in Brazil.
The Brazilian CBDC pilot was officially announced in 2022. With a population of 214 million, the largest country in Latin America remains a location of attraction for global crypto companies.
Related: BIS successfully completes retail CBDC pilot called “Project Icebreaker”