Brazil's Central Bank Picks 9 Partners To Develop CBDC

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Brazil's Central Bank Picks 9 Partners To Develop CBDC

Brazil'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,