The Brazilian central bank invited new fintech & crypto firms for its central bank digital currency (CBDC) pilot project.
The Central bank digital currency (CBDC) is a centralized form of digital currency, which came into light after the popularity & success of stablecoins in the crypto sector. At present, more than 100 Central Banks are doing work on CBDC.
Just a day ago, a local news report confirmed that Brazil’s central bank authorised the giant Crypto exchange Mercado Bitcoin to contribute to the country’s CBDC, or say digital real.
All the other new digital real participants are Brazilian bank Caixa along with card providers Elo and Microsoft.
In May of this year, nearly 14 crypto companies submitted their request to join the South American country’s central bank digital currency program but Mercado succeeded to won the choice of the central bank.
Fabricio Tota, director of new business at Mercado Bitcoin, said that his company will contribute to the digital real project to bring modernization to the traditional financial payment systems.
Reportedly, the Brazilian central bank aimed to launch its CBDC by 2024. This central bank also believes that digital currencies may play an important role in digital payment services.
Ripple helps Central Banks
San Francisco headquartered blockchain fintech firm Ripple (XRP) continuously expanded its hand among the central bank’s interest areas.
At present, more than 20 Central Banks are in partnership or contact with Ripple, to get guidance & technical support to develop CBDC.
So far, nearly 10 central banks are in the final phase of the CBDC rollout & they are experimenting with the use of CBDC at the retail & Institutional levels.
Because of the surging CBDC development & blockchain adoption race, the US Federal Reserve is also facing peer pressure to develop its digital dollar.