Central Bank of Brazil Chooses Nine Institutions to Study Digital Real Possibilities – Bitcoin News


The Central Bank of Brazil and Fenasbac, the National Federation of Central Bank Server Associations, have decided to select nine projects to monitor and support their various proposals for the application of a hypothetical Brazilian central bank digital currency (CBDC), the digital reality. Projects from companies and organizations such as Aave, Banco Santander and Mercado Bitcoin were chosen to be developed as examples of how digital reality could be used.

LIFT Challenge Selects Nine Digital Real Projects

The LIFT challenge, an initiative organized by Fenasbac and the Central Bank of Brazil, selected nine projects that present different ideas on how a future digital real CBDC (central bank digital currency) could be incorporated into several applications. The Financial and Technological News Laboratory (LIFT) decided that these nine projects were the most interesting, selected from 47 proposals submitted by 43 organizations.

The challenge has attracted the attention of companies around the world, including proposals from organizations in Germany, the United States, Israel, Mexico, Portugal, the United Kingdom, and Sweden. Regarding the criteria used to select these projects and reject others, the central bank stated:

[The central bank] sought a balance between the diversity of the portfolio of proposals submitted to the laboratory and the need for detailed monitoring of the selected projects.

Project Diversity

The nine approved projects are very different from each other, and seek to include digital reality in different applications, which include delivery versus payment solutions, payment versus payment solutions, Internet of Things (IoT), challenge applications as well as dual offline payment proposals.

The nine selected proposals were submitted by Aave, Banco Santander Brasil, Febraban, Giesecke + Devrient, Itaú Unibanco, Bitcoin Market, Tecban, VERT and Visa do Brazil. The Giesecke + Devrient proposal, for example, aims to use the CDBC as a tool to solve the problem of double offline payments.

Aave, the decentralized financial protocol, also presented a project that would focus on offering loans, ensuring the fulfillment of these operations with the rules of the financial system, using challenging tools such as liquidity. Itau’s Unibanco project will focus on using the currency to process international payments, linking this with the development of an application for Colombian users. The Visa do Brazil application would use the sign for funding SMEs with a challenge application.

The Central Bank of Brazil is looking to study all of these applications to deepen its understanding of the uses of digital currency with the idea of ​​creating its own digital currency in the future, according to a press release.

What do you think of the nine projects selected by the Central Bank of Brazil? Tell us in the comments section below.

sergio@bitcoin.com '

Sergio Goshenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price hike occurred in December 2017. Having a computer engineering background, living in Venezuela, and being affected by the cryptocurrency boom on a social level, he offers a different point of view. on crypto success and how it helps the unbanked and underserved.

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