Tech and Banking Powerhouses Collaborate in Brazil’s Groundbreaking Digital Currency Initiative

Brazil’s Central Bank is gearing up to lead a pioneering venture into Central Bank Digital Currencies (CBDC), attracting a diverse and influential consortium of corporations, both domestic and international. This innovative collaboration, aimed at evolving the digital currency landscape, will take form in an upcoming pilot project for the digital realm.

The Central Bank of Brazil is set to initiate the integration of entities into the digital real platform starting mid-June 2023, with participation from both national and international companies in their CBDC trial.

An upcoming pilot project for the digital real is set to draw on the expertise and influence of these entities, a collaborative move aiming to make significant strides in the realm of digital currency.

Visa and Microsoft collaborate on Brazil’s CBDC experiment

The Brazilian Central Bank, as the initiative’s spearhead, is ready to kick-start the process of bringing on board these participants onto their digital platform in mid-June 2023. From Silicon Valley’s Microsoft to Sao Paulo’s IT firm 7COMm and Brazil’s Interbank, the participant’s list reads like a who’s who of the tech and finance industry.

The final selection process wasn’t an easy task. With over 36 keen contenders putting forward their names, the Bank had a pool of “more than 100 institutions” to choose from. The dust has settled with 14 participants, some of them representing conglomerates, ready to explore the potential of CBDC.

Other noteworthy collaborators include global payment giant Visa, Spanish banking institution Santander, and Brazil’s banking powerhouses like Itaú Unibanco, BTG Bank, and Bradesco, to name a few.

During this crucial stage of the digital real pilot, the Central Bank’s focus is on testing the privacy safeguards and programmability features of the platform, using the delivery versus payment (DvP) protocol for federal public security as a benchmark.

First announced in 2022, the digital real aspires to anchor its value against the national fiat payment system, following Bitcoin’s footsteps in terms of fixed supply and minting limits.

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