Mercado Bitcoin partners with Stellar to support Brazilian CBDC

On May 24, Mercado Bitcoin, Latin America’s largest cryptocurrency exchange, announced a partnership with the Stellar Development Foundation (SDF) to participate in Brazilian CBDC development.

According to an official share by the SDF, Mercado Bitcoin will work on one of nine projects selected for the LIFT Real Digital competition, promoted by the Central Bank of Brazil, to create a full standard for a CBDC that meets the goals of the following requirement set by the Brazilian government.

The LIFT Challenge Real Digital is a collaborative environment carried out by the Central Bank of Brazil (Bacen) in partnership with the National Federation of Associations of Central Bank Servers (Fenasbac). With the announcement of Stellar’s integration, SDF will join the consortium created by Mercado Bitcoin to develop solutions for Real Digital and which also has CPQD and ClearSale.

In addition, the “team” Mercado Bitcoin – Stellar will have to work very hard to achieve certain success because they will have to compete with some long-standing names in the financial industry, such as Visa, Microsoft, AAVE, and wallet parent company Metamask ConsenSys. This means that Brazil is looking to create a CBDC based on the development of major financial and technology brands.

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Denelle Dixon, CEO of Stellar Development, stated that Stellar’s network is ready to assist Mercado Bitcoin and the Central Bank of Brazil as they investigate use cases for the Real Digital’s future. “Stellar was designed for asset issuance, and its built-in compliance tools give Mercado Bitcoin a strong foundation to develop a solution with the features that Bacen expects to see,” she claims.

The Governor of the Central Bank of Brazil, Roberto Campos Neto, recently said that the CBDC could launch in the second half of 2022. However, like the European CBDC, they will roll out a test version before the main launch. awareness for the people in the country.

In addition, he also pointed out that the CBDC will be priced based on the STR (Reserve Transfer System), an all-asset liquidation system backed by Brazilian Reals. Besides, he also stated that through this new system, banks will be able to issue stablecoins based on their deposits and enable smart contracts and DeFi solutions through the Central Bank CBDC platform.

As for Stellar, this is not the first time the platform has started working with CBDCs of countries around the world. The Commercial Bank of Ukraine previously tested the Stellar blockchain-based CBDC. Moreover, setting foot in a large and crypto-friendly country like Brazil will create a solid premise for Stellar to reassert its position in the market.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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