In 2022, the Brazilian CBDC beta model was officially announced, and plans to create a real digital beta were unveiled. This digital currency will be linked to the national currency, the real one, to ensure a stable value.
To maintain control and manage the supply, real digital currency will be gradually minted over time, resulting in a stable and limited issuance of the currency.
Digital reality takes center stage as the possibilities evolve
With a population of 214 million, the largest country in Latin America continues to attract global cryptocurrency companies. Its size and importance make it an attractive destination for companies in the crypto industry.
A collaboration between Binance and Mastercard resulted in the introduction of a prepaid crypto card in Brazil earlier this year. In March, Coinbase partnered with local payment providers, enabling users to purchase cryptocurrencies and facilitating local currency deposits and withdrawals.
On May 19, the Central Bank of Brazil granted Latam Gateway, the payment provider for Binance in Brazil, a license to operate as a payment institution and issuer of electronic money.
The Digital Real Pilot Program marks a significant milestone in Brazil’s financial landscape, welcoming a diverse range of participants, including financial institutions, cooperatives, public banks, crypto-service developers, payment institutes and infrastructure operators. This holistic approach has been put in place to boost the country’s growing digital economy.
According to the timeline provided by the Central Bank, the process of integrating selected participants into the real digital pilot platform is scheduled to begin in mid-June 2023.
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