Since Brazil recorded intentions to develop its own Central Bank Digital Currency (CBDC), the Real Digital, the South American country has been attempting strategies to achieve this set objective. On Thursday, it was announced that the country selected 9 CBDC projects to help in incubating innovations towards achieving the goals of Real digital.
The central bank is working with LIFT, an innovation hub to analyze these projects. Brazil intends to rule out all uncertainty about the Real by analyzing all possible outcomes for the functionality of the digital currency, and probable methods of achieving the CBDC as early as possible.
The 9 projects selected are a fraction of the total 47 projects submitted by a couple of companies from around the world. Countries like Germany, Mexico, the US, the UK, Israel, Portugal, Sweden had some of their home-based companies send in their projects.
A narrow selection based on the objective of the Brazilian Central Bank for the CBDC led to these choices. The selected projects are Aave, Itaú Unibanco, Bitcoin Market, Banco Santander Brasil, Tecban, Visa do Brasil, Febraban, VERT, and Giesecke + Devrient.
Each project specializes in one use case to another ranging from handling payment, bargaining delivery versus payment (DvP), tokenization, curation of resourceful materials for accessing loans, testing logistics, and many others.
LIFT Sets Real Digital Timelines
Brazil wishes to have its CBDC in its pilot stage before the end of 2022, therefore, all of these projects are expected to have explored all events that will lead to the dysfunctionality of the digital currency, come up with what entirely works and is effective for payment and all of its associated financial services.
LIFT will start implementing the thesis derived from these projects by March 28 and the process will run concurrently for 4 months. All research and computation are billed to be concluded before the end of next year so that the Real can effectively be issued and used by 2024.
Brazil will likely consider the global standard for the issuance of a Central Bank Digital Currency as suggested by Haruhiko Kuroda, governor of the Bank of Japan (Bon) as not to fall short of presenting a globally recognized digital currency.