A statement issued by the Central Bank of Brazil on June 22 revealed that the apex bank will work closely with the largest crypto exchange in Latin America Mercado Bitcoin to conduct pilot trials for the central bank digital currency (CBDC). In a news briefing captured by the local newspaper Valor illustrated that Mercado Bitcoin will join efforts with Mastercard, Sinqia, Broker Genial, and Registrar Cerc to launch CBDC trials.
On Thursday it was reported that the central bank officially allowed the popular Brazilian bank Caixa and card provider Elo to actively participate in the CBDC development. Previously the Central Bank of Brazil selected approximately 14 high-profile banks and payment platforms to participate in the pilot test for digital fiat.
Mercado Bitcoin to Participate in CBDC Trials
During the May selection, Mercado Bitcoin failed to meet the requirements provided by the central bank. Guided by the consortium the central bank failed to select either a regulated financial or payment platform with accessibility to the Brazilian financial system.
On June 2 the Brazilian central bank greenlighted the Mercado Bitcoin license which allowed the platform to become a payment institution. Fabricio Tota, the director of new business at Mercado Bitcoin told the Valor newspaper that the participation in the digital real pilot test marks the central bank’s commitment to improving innovation in the financial sector.
Tota noted that most of the selected firms have invested heavily in improving the technology. He expressed delight to be selected for the consortium and to be among the participants of the CBDC pilot project.
Will Brazil Launch its CBDC in 2024?
Elsewhere the executive vice president of Mastercard Products and Engineering in Latin America and the Caribbean Walter Pimenta stated that the partnership aims at restoring customers’ trust and upholding compliance in the crypto space. The executive affirmed that with the partnership the selected firms will explore ways to solve real-world problems.
A separate report from Glovo outlined that the consortium aimed at conducting trials for the issuance of the CBDC. The Glovo report mentioned that the selected parties will provide valuable inputs on the technical features such as the network and governance tools for the distributed ledger technology (DLT). Additionally, the consortium aims at exploring suitable treasury bills that will support CBDC.
The central bank of Brazil projects to launch the CBDC in 2024 aiming at increasing the adoption of crypto as a financial tool. Earlier the President of the central bank Roberto Campos Neto confirmed that the CBDC will be launched after the final phase of the pilot project which will involve multiple financial institutions.
He mentioned that the Brazilian CBDC has attracted international attention. Neto confessed that the team behind the Brazilian CBDC has integrated a unique design to allow the banks to tokenize their digital assets.