In 2022, the Brazilian CBDC pilot was officially announced, unveiling the plan to create a digital real pilot. This digital currency would be pegged to the national fiat currency, the real, ensuring a stable value.
To maintain control and manage its supply, the digital real would be gradually minted over time, resulting in a fixed and limited issuance of the currency.
Digital Real Takes Center Stage As Possibilities Unfold
Boasting a population of 214 million, the largest country in Latin America continues to attract global cryptocurrency companies. Its size and significance make it an appealing destination for businesses in the crypto industry.
A collaboration between Binance and Mastercard resulted in the introduction of a prepaid crypto card in Brazil earlier this year. In March, Coinbase forged partnerships with local payment providers, enabling users to purchase cryptocurrencies and facilitating deposits and withdrawals in the local currency.
On May 19, the Brazilian central bank granted Latam Gateway, the payment provider for Binance in Brazil, a license to operate as a payment institution and electronic money issuer.
The digital real pilot program represents a significant milestone in Brazil’s financial landscape, as it welcomes a diverse range of participants, including financial institutions, cooperatives, public banks, crypto service developers, payment institutes, and infrastructure operators. This inclusive approach is set to enhance the country’s growing digital economy.
According to the timeline provided by the central bank, the process of integrating the chosen participants into the digital real pilot platform is scheduled to begin in mid-June 2023.
Featured Image From Dreamstime, Chart From TradingView.com