Important crypto news for Visa, the payments giant, which has been selected among the fourteen institutions that will be part of the Brazilian CBDC (Central Bank Digital Currency) pilot project.
Below are all the details.
Summary
Visa within Brazil’s crypto project
As anticipated above, the Central Bank of Brazil has selected fourteen institutions to participate in the Real Digital Pilot project, the country’s Central Bank Digital Currency (CBDC).
Specifically, the list includes major local private banks such as Bradesco, Nubank, and Itaú Unibanco, as well as Brazil’s largest public bank, Banco do Brasil, and the local stock exchange B3.
In addition, multinational companies such as Visa and Microsoft have also been chosen to participate.
The central bank will begin incorporating participants into the Real Digital Pilot platform in mid-June 2023. In total, the bank received 36 proposals of interest from more than 100 institutions from different financial sectors.
These include: payment institutions, cooperatives, public banks, crypto companies, financial market infrastructure operators, and payment settlement institutions.
Brazil launches pilot test of Digital Real on the Stellar blockchain
Brazil’s Central Bank recently launched a pilot test of its digital currency, the Digital Real, on the Stellar blockchain to make digital payments more accessible.
The Digital Real pilot test is expected to replicate the success of Brazil’s instant payment system Pix, which was launched in November 2020 and quickly became one of the most popular payment methods in Brazil.
The central bank’s digital currency (CBDC) is issued and backed directly by the central bank. It is worth recalling that CBDCs are digital versions of fiat currencies designed for use in everyday transactions.
These are now known worldwide as governments and central banks seek to modernize their payment systems and reduce their reliance on cash.
Among the benefits of Digital Real we see, first and foremost, digital payments that are more accessible to people who do not have access to traditional banking systems.
In fact, according to a World Bank report, about 45% of Brazilians do not have access to a bank account. Hence, Digital Real will allow these people to make digital payments without the need for a bank account.
Then, Digital Real will make payments more efficient and convenient. As we know, digital payments are faster and cheaper than traditional payment methods such as cash and checks.
Digital Real will allow Brazilians to make instant payments without the need for intermediaries, reducing transaction costs and increasing efficiency.
Finally, security: the Brazilian CBDC will be issued and backed by the Central Bank, hence it will be highly secure and resistant to hacking and other attacks.
Factor that will give Brazilians more confidence in using digital payments, further increasing adoption.
Bitget and the partnership with Capitual to participate in the CBDC project
Crypto exchange Bitget (BGB) recently announced its partnership with fintech company Capitual to participate in Brazil’s Central Bank Digital Currency (CBDC) project.
We see that Capital is among the main partners of the Brazilian Central Bank, which is assisting the institution in exploring CBDCs.
In addition, Brazil and Argentina are considering launching a joint CBDC protocol. The duo also aims to develop a joint strategy for their region.
Bitget is looking to take advantage of this connection and is seeking with Capitual to participate in Argentina’s CBDC efforts.
In addition to playing a role in CBDC projects, the exchange also aims to strengthen ties with the region and extend its reach to “government-wide” initiatives.
Bitget CEO Gracy Chen commented on the exchange’s goals regarding the region, stating the following:
“Latin America is a market with strong growth potential for our business and we would like to focus more on the region and better understand the market in our future roadmap. We also welcome opportunities to explore CBDC projects with Capital and contribute on various fronts in the area.”
