The CBDC in Brazil continues to build momentum. Several project proposals and challenge partners have been elected to investigate whether a digital real is viable in the country. No immediate results are to be expected, although a CBDC pilot may occur later this year.
Digital Real CBDC Challenge Partners
Per the Brazilian central bank, the objective remains to investigate the feasibility of a digital real. Creating a digital counterpart to the domestic currency can prove crucial in developing e-commerce and streamlining financial access. In late 2021, the bank confirmed a CBDC pilot would occur in 222, with a full release slated for 2024.
However, that can only be achieved if the central bank finds the necessary challenge partners. Several project proposals were put forward by various players, including Bitcoin Market, Visa, and Santander. Every proposal analyzes different aspects of the digital real and whether it can prove viable and valuable.
Going from 47 CBDC proposals to just 9 is an important first step. Togher with Bitcoin Market, DeFi outfit Aave is represented, as are several banks and Visa do Brasil. It will be intriguing to see which of these ideas gains the most support and whether any will enter the execution phase over the coming months.