Brazil has announced the launch of its CBDC pilot, the digital real, which is set to be pegged to the national fiat currency, the real. The digital currency will be gradually minted over time to ensure a stable value and a fixed and limited issuance of the currency. This move has put the digital real at the forefront of Brazil’s financial landscape, with a diverse range of participants, including financial institutions, cooperatives, public banks, crypto service developers, payment institutes, and infrastructure operators. The inclusive approach is set to enhance Brazil’s growing digital economy.
With a population of 214 million, Brazil continues to attract global cryptocurrency companies, making it an appealing destination for businesses in the crypto industry. Binance and Mastercard have collaborated to introduce a prepaid crypto card in Brazil, while Coinbase has partnered with local payment providers to enable users to purchase cryptocurrencies and facilitate deposits and withdrawals in the local currency.
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 on May 19. According to the central bank’s timeline, the process of integrating the chosen participants into the digital real pilot platform is scheduled to begin in mid-June 2023.
In conclusion, Brazil’s digital real pilot program is a significant milestone in the country’s financial landscape, set to welcome a diverse range of participants and enhance its growing digital economy.
About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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