The Central Bank of Brazil’s digital currency will initially focus on payment solutions for wholesale interbank transactions.
Banco Central do Brasil (Brazil’s central bank) plans to include more participants in its digital currency scheme. The list, which was released by the bank on May 24, includes the names of all the participants with whom the central bank digital currency real digital currency launch is scheduled to be launched. The final list of 14 participants was compiled from 36 bids submitted by individuals and collaborating entities, totaling over 100 institutions.
The real digital beta for Brazil will start with 14 participants, including Visa and Microsoft
Intending to launch it fully in 2024, the Central Bank of Brazil announced the launch of its own Central Bank Digital Currency (CBDC) last year. The initial purpose of the solution is to facilitate wholesale transactions between banks and eventually, it will be made available to customers through token bank deposits. The CBDC solution aims to make transactions instantly settleable and reduce overall transaction costs.
This phase of the real digital experience aims to test the privacy functions and programmability to ensure that the exchange of information between the various participants on the platform will be easy. It will also test the programmability and interoperability of the services provided by the participants.
on the participants Recently released list Include individual and collaborative entities. They include names like Bradesco, Banco Inter, Microsoft, and 7comm; XP and Visa; Bano ABC, Hamsa, and LoopiPay; Itau Unibanco Microsoft in collaboration with other organizations; and the Bank of Brazil.
The list includes a wide range of organisations, including cooperatives, public banks, payment solution providers, financial market infrastructure operators, crypto asset service providers and payment arrangement providers. With all these entities in place, the Central Bank of Brazil intends to add selected participants to the pilot digital platform by June 2023.
The Brazilian CBDC beta will initially focus on bulk payment solutions
The Brazilian Central Bank of Brazil, the real digital currency, is an extension of the Brazilian physical currency. It can be exchanged for conventional currency and will have the same rate and value as conventional currency. This initiative will encourage the further inclusion of Brazilian citizens in the financial system. The solution combines the features of fiat and digital currencies, allowing the digital currency to take advantage of the price stability attributes of fiat currencies while leveraging blockchain technologies for faster and more secure transactions.
One of the reasons why the solution is primarily focused on wholesale transactions rather than retail is that Brazil already has a well-established digital payment system, Pix. Pix is already one of the largest e-commerce payment solutions in Brazil; It was launched in 2022 and is currently used by more than 60% of Brazilians.
Rather than trying to compete with this established solution, Banco Central do Brasil will follow the Pix model in other areas of financial services, particularly at the wholesale level.
the next
