Brazil's Central Bank Picks 9 Partners To Develop CBDCBrazil's central bank disclosed that it has chosen nine projects to move forward in its attempt to build a central bank digital currency (CBDC).The projects will move forwards through a bank-managed innovation lab.The lab, which goes by the name LIFT in Portuguese, chose the projects from banks, a Decentralised Finance (DeFi) protocol, and a cryptocurrency exchange.
Defi lending platform Aave, Brazil-based cryptocurrency exchange Mercado Bitcoin, and banks including Santander Brasil and Itau Unibanco are among the chosen partners.
Febraban, a Brazilian bank federation, Giesecke + Devrient, a German payments provider, and Tecban, a Brazilian banking service, and its partner Capitual are also on the list.LIFT has agreed to advance the following projects with the goal of establishing the digital real, according to a report released by Brazil's central bank.
The report also stated that LIFT had got 47 offers from 43 different companies, from which it chose the nine.The selection procedure sought a balance between the diversity of the portfolio of proposals and the necessity for detailed monitoring of the chosen projects.Here are details of the selected proposals:Aave: It gathers resources from several savers (forming a liquidity pool) with a focus on offering loans and guaranteeing the adherence of these operations to the rules of the financial system, using DeFi tools.Banco Santander Brasil: It deals with Delivery versus Payment (DVP) and the conversion to the digital format of the right to own vehicles and properties.Febraban: It deals with DvP of financial assets.Giesecke + Devrient: It handles dual offline payments.Itau Unibanco: It handles international payments, using the Payment versus Payment (PvP) method in an application with Colombia.Bitcoin Market: It deals with digital asset DvP, with a focus on cryptocurrency assets.Tecban: It presents a logistics solution for e-commerce based on Internet of Things (IoT) techniques.VERT: It deals with rural financing based on a programmable tokenised asset with a value linked to the Real stablecoin.Visa do Brasil: It deals with financing small and medium-size companies based on a DeFi solution.Following the innovation lab in 2022 and trial projects in 2023, the central bank has previously stated that the definitive version of a CBDC will be decided in 2024.