Brazil’s central bank has revealed that it has chosen nine projects to move forward in its attempt to build a central bank digital currency (CBDC).
Projects will progress through an innovation lab run by the bank.
The lab, which is called LIFT in Portuguese, chose the projects of banks, a decentralized finance protocol (DeFi) and a cryptocurrency exchange. Lending platform Defi Aave, Brazil-based cryptocurrency exchange Mercado Bitcoin, and banks such as Santander Brasil and Itau Unibanco are among the chosen partners. Febraban, a Brazilian banking 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 in an effort to establish the digital real, according to a report released by Brazil’s central bank. The report also states that LIFT received 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 need for detailed monitoring of the projects selected.
Here are the details of the selected proposals:
Aave: It brings together the resources of several savers (constituting a pool of liquidity) by focusing on the supply of loans and ensuring that these operations comply with the rules of the financial system, using DeFi tools.
Santander Bank Brazil: It deals with Delivery against Payment (DVP) and the conversion to digital format of the right of ownership of vehicles and goods.
Febraban: He deals with DvP of financial assets.
Giesecke + Becomes: It handles double payments offline.
Itau Unibanco: It handles international payments, using the Payment versus Payment (PvP) method in an application with Colombia.
Bitcoin market: It discusses the DvP of digital assets, with a focus on cryptocurrency assets.
Tecban: It presents a logistics solution for e-commerce based on Internet of Things (IoT) techniques.
GREEN : It is a rural finance based on a programmable tokenized asset with a value linked to the Real stablecoin.
Visa from Brazil: It deals with the financing of small and medium enterprises based on a DeFi solution.
After the innovation lab in 2022 and trial projects in 2023, the central bank previously said the final version of a CBDC would be decided in 2024.