Brazil’s central bank has chosen 13 financial institutions to test the implementation of its central bank digital currency (CBDC) pilot project.
According to a Sept. 4 Banco Central do Brazil announcement, the bank accepted 13 out of 42 applications to participate in the second phase of its CBDC pilot project.
“In the second phase of testing, the infrastructure created for the pilot will test the implementation of financial services, available through smart contracts created and managed by third parties participating in the platform,” the central bank said in a statement.
Another call for bank applicants expected
Brazil’s Central Bank will oversee 11 projects while Brazil’s Securities and Exchange Commission will lead the remaining two. Among the companies selected to participate in the CBDC pilot are financial giants like VISA and Santander. Others include Bradesco, Itaú Unibanco, and the Brazilian stock exchange B3 as well as local neobank NuBank.
This is not the last CBDC project expected of Banco do Brazil. The institution already noted in the announcement that it expects to open a new call for firms looking to “test the implementation of smart contracts by the end of the first half of 2025.”
The news follows early July reports that Taiwan’s central bank has made significant strides in its central bank digital currency research, revealing a prototype platform. The prototype platform features a two-tier issuance structure and will initially offer a non-interest bearing currency. It will support both anonymous and registered wallet options.
Also in early July, reports started circulating that The Bahamas, a pioneer in launching a central bank digital currency, is now crafting regulations to boost the adoption of its “Sand Dollar.”
“We foresee a process where all of the commercial banks will eventually be in that space and they will be required to provide their clients with access to the central bank digital currency,” said John Rolle, governor of the Bahamas’ central bank. “We’ve begun to signal that to our institutions.”
Featured image via Dall-E 3
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