Wednesday , October 9 2024
Home / Bitcoin (BTC) / Mercado Bitcoin to Support Brazil’s CBDC Efforts (Report)

Mercado Bitcoin to Support Brazil’s CBDC Efforts (Report)

Summary:
Mercado Bitcoin – the largest cryptocurrency exchange in Brazil – will reportedly participate in the country’s pilot project to launch a digital real. The central bank intends to issue such a financial product in 2024. The List of Contributors As reported by a local media outlet, Banco Central do Brasil has authorized Mercado Bitcoin to take part in the CBDC development. Speaking on the matter was Fabricio Tota – director of new business at the exchange: “Our participation validates the Central Bank’s intention to bring innovation to the financial system with those who had already been working with this technology and not just with the incumbents who appropriated it.” Other project participants include well-known companies such as the payment processing giant Mastercard,

Topics:
Dimitar Dzhondzhorov considers the following as important: , ,

This could be interesting, too:

Wayne Jones writes Cardi B’s X Account Promotes Meme Coin: Be Careful, Warning Signs Appear

Mandy Williams writes TON Blockchain Reaches 100M Users Amid Ecosystem Growth

Wayne Jones writes National Bank of Bahrain Launches Region’s First Bitcoin Investment Fund

Wayne Jones writes Crypto Companies Pour 0M into Premier League Sponsorships

Mercado Bitcoin – the largest cryptocurrency exchange in Brazil – will reportedly participate in the country’s pilot project to launch a digital real.

The central bank intends to issue such a financial product in 2024.

The List of Contributors

As reported by a local media outlet, Banco Central do Brasil has authorized Mercado Bitcoin to take part in the CBDC development. Speaking on the matter was Fabricio Tota – director of new business at the exchange:

“Our participation validates the Central Bank’s intention to bring innovation to the financial system with those who had already been working with this technology and not just with the incumbents who appropriated it.”

Other project participants include well-known companies such as the payment processing giant Mastercard, the financial software fintech Sinqia, brokerage firm Genial, and others.

Brazil’s central bank has previously outlined that only regulated financial institutions with direct access to the National Financial System (SFN) network can assist the CBDC efforts.

The consortium intends to participate in all aspects of the test, including wholesale, retail, and National Treasury securities negotiations.

The central bank aims to release a CBDC next year. According to the initial plan, the monetary product will be a blockchain-based instrument that supports retail transactions and is backed by customer bank deposits. 

“This could reduce the cost of credit, the cost of improving the return on investments. There is a great potential for new service providers, fintechs, democratizing access to the market and offering new services,” Fabio Araujo – the coordinator of the CBDC project – added.

Additional Crypto Jurisdiction for the Central Bank

Besides being responsible for issuing a digital real, Brazil’s central bank was recently assigned as the country’s crypto regulator. The legislation, signed by President Luiz Inácio Lula da Silva, became official on June 20.

According to the rules, local companies can not provide crypto services without obtaining approval from the financial institution. The bank will also monitor if organizations abide by anti-money laundering procedures and whether they are linked to criminal activities, including financing terrorism.

Brazil’s SEC will play a role in the regulatory process, too. It will partner with Banco do Brasil to supervise digital currencies classified as securities. It is worth mentioning that current domestic law does not designate which assets fit in that category and which are seen as commodities. 

You Might Also Like:

Leave a Reply

Your email address will not be published. Required fields are marked *