Mercado Bitcoin Collaborates with Stellar to Create MVP of Brazilian CBDC

Brazilian exchange Mercado Bitcoin announced a partnership with the Stellar Development Foundation (SDF) on Tuesday. The company said it plans to develop one of nine projects selected for the LIFT Challenge Real Digital promoted by the Brazilian Central Bank.

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

Stellar Development CEO Denelle Dixon said that Stellar’s network is ready to support Mercado Bitcoin and Brazil’s central bank as they explore use cases for the future of Real Digital. “Stellar is designed for issuance of assets, and its built-in compliance tools provide a strong foundation for Mercado Bitcoin to develop solutions with the functionality Bacen expects,” she argued.

According to the statement, Mercado Bitcoin chose the Stellar Network because of the protocol’s speed, efficiency, and security.

“We are in a consortium of companies with the structure and ambition to build robust solutions for financial markets through blockchain technology. By leveraging the Stellar Network, we can provide a complete case for the evaluation of central banks,” Reinaldo Rabelo said. said CEO of Mercado Bitcoin.

In addition to the consortium created by Mercado Bitcoin, the Brazilian central bank has chosen the DeFi Aave protocol and ConsenSys, working with Visa and Microsoft to develop use cases for the country’s Real Digital.

In April, Cointelegraph reported that the governor of Brazil’s central bank had confirmed that Brazil’s sovereign digital currency pilot project would be launched this year. However, this release will still be a pilot version and will not be available to the entire population of the country. According to Campos Neto, Real Digital hopes to enable smart contracts and decentralized finance on its CBDC platform.

“The Real Digital initiative is a response to the rapid pace of digital transformation and society’s demand for a unique means of settlement in a new environment. Conditions for significant efficiency gains must be achieved,” Campos Neto said last year.

Fábio Araujo, Real Digital project coordinator in BC, recently said that the central bank aims to build or interconnect the national financial system with decentralized finance (DeFi) and smart contracts. In his opinion, this is a huge contribution of the blockchain ecosystem and cryptocurrencies.

“It’s these fundamentals of the crypto landscape that we want to bring within regulatory boundaries to do large-scale work to give access to more people. We’re bringing smart contracts and Defi technologies inside to reach a larger audience, and I’d like to,” he said.

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