Microsoft and Visa Have partnered for a CBDC Pilot Project in Brazil
Companies both at home and abroad are expected to take part in the digital currency (CBDC) pilot project being run by the Brazilian central bank.
The applicants to the CBDC pilot project represented a wide range of experience in the banking, payments, cryptocurrency, and financial market infrastructure industries.
Other important participants in the banking sector will join the Microsoft-led group for the CBDC pilot project.
Currently, the central bank is using a delivery versus payment protocol for federal public assets as a test case for the programmability and privacy features of its platform as part of the digital real pilot.
In 2022, the Brazilian government made public its intention to launch a “digital real pilot,” or CBDC pilot. The value of this crypto would be set in relation to the real, the country’s fiat currency.
The digital real would be issued in a fixed and restricted quantity throughout time, allowing for steady control and management of its supply.
The biggest Latin American nation continues to attract worldwide crypto firms with its massive population of 214 million. For the crypto sector, it is an attractive location due to its size and relevance.
Coinbase began establishing relationships with regional payment processors in March, paving the way for customers to make deposits and withdrawals in their native currency while making cryptocurrency purchases.
Binance’s Brazilian payment processor, Latam Gateway, received its authorization to function as a financial institution and electronic money issuer on May 19 from the Brazilian Central Bank.
The bank’s given timetable indicates that on or around the middle of June 2023, efforts will begin to include the selected participants in the digital real pilot platform.