Brazil’s central bank, Banco Central do Brasil (BCB), selected 13 participants for the next phase of its CBDC, the Real Digital, pilot program.
Together with the Securities and Exchange Commission (CVM), the BCB has released names of the projects and companies set to take part in this critical phase of testing.
Out of 42 use case proposals submitted, only 13 were chosen. The phase is all about testing the infrastructure, particularly focusing on how financial services will work on the Drex Pilot platform.
These services will then be implemented using smart contracts managed by third parties. This is where the real action begins.
In just a few weeks, the BCB said development on these selected projects will start, and all participants will gather to figure out the best ways to govern, implement, and test privacy solutions in the proposed services.
The Drex Pilot now has 16 major companies working directly on the platform’s development and testing. You’ve got everyone from Visa to Santander jumping in.
Then there’s a host of other big names, including Brazilian Credit Bank, Banco Inter, Itaú Unibanco, and Bradesco. Even tech giants Microsoft and Google are in the mix.
Some of the phase’s themes include credit collateralized in CDBs (Certificate of Bank Deposits), foreign exchange market optimization, and financing international trade operations.
Banco Inter is taking on trade finance, while XP and Visa are focusing on foreign exchange market optimization. Agribusiness transactions and real estate deals will also be put through their paces in this phase.
Brazil strengthens crypto regulation
Meanwhile, Brazil’s crypto regulation has also been going steady. In June 2023, the government put out a new law called the Legal Framework for Virtual Assets. The Central Bank of Brazil (BCB) is now in charge of making sure crypto companies follow it.
The government has been keeping a close eye on tax compliance as well. In June, Brazil’s tax authority asked foreign crypto exchanges to clarify their operations within the country.
Brazilians had over $246 billion in crypto assets in 2023, which was a sharp rise from 2022 and even the bullish 2021.
Digital wallets are also becoming more and more popular in Brazil. Recent reports show that nearly half of all Brazilian consumers now use digital wallets for their transactions.
This trend is particularly surprising among older generations. Around 31% of baby boomers reported using digital wallets for online purchases, surpassing the younger generations in some cases.
Local names like Binance and Mercado Bitcoin are expanding their services, thanks to the strong demand for crypto-related payment solutions.
