Brazil’s Largest Exchange Mercado Bitcoin Added To Country’s CBDC Pilot

Key Points:

• Brazil’s central bank has authorized Mercado Bitcoin to participate in the country’s CBDC pilot list.
• The approved alliance includes Mastercard, broker Genial, registrar Cerc, and fintech financial software Sinqia as partners.
• Brazil’s central bank aims to launch the digital currency by 2024.

Brazil’s central bank has authorized Mercado Bitcoin, the largest local crypto exchange, to participate in the country’s CBDC pilot project. Meanwhile, Brazil’s state-owned Caixa Bank was also approved to participate in the project on the same day.

Mercado Bitcoin officially became a payment institution on June 2, a week after the pilot participants were identified.

“Our participation validates the Central Bank’s intention to bring innovation to the financial system with those who have already been working with this technology and not just with the incumbents who have appropriated it,” said Fabricio Tota, director of new business at Mercado Bitcoin, Valor added.

As previously reported, in May this year, the Central Bank of Brazil selected 14 institutions to participate in the CBDC pilot project, including large local private banks such as Bradesco, Nubank, and Itaú Unibanco, as well as such as Brazil’s largest bank Banco do Brasil and domestic securities companies B3. Multinational companies such as Visa and Microsoft were also selected to participate in the project.

Midway through June 2023, the central bank will add participants to the Real Digital Pilot platform. Glovo claims that the consortium plans to take part in testing the issue of CBDC and Treasury bills as well as the technical components of the network and the distributed ledger technology’s governance architecture.

Brazil’s central bank aims to launch the digital currency by 2024 after a closed pilot program next year with financial institutions, bank president Roberto Campos Neto said on Tuesday time adding that the project has received international attention.

Speaking at an event hosted by news website Poder 360, Campos Neto said the central bank’s digital currency design would encourage banks to tokenize their assets, with significant results.

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