The drex CBDC pilot launched by the Brazilian Central Bank is now in its second phase where it is inviting even more participants to take part. This phase is geared towards the examination of the more complicated use cases and enhancing the available privacy measures. To date, thirteen use cases have been confirmed including those of carbon credits, agricultural bonds and foreign trade platforms.
Brazil is increasing its focus on the Drex CBDC pilot. The Central Bank of Brazil opened the project to new participants as it seeks to develop further simple applications on the platform. Beginning October 14, groups of new users are invited to submit proposals for consideration of the project’s executive committee until November 29.
Brazilian Central Bank Expands CBDC Pilot for Broader Testing
The recently endorsed measures will supplement the existing 13 use cases one of which involves the sophisticated use of tokenized assets. These applications cut across the use of the tokens as collateral for credit, the loaning of funds secured by the government, financing of foreign trade, and trading of carbon credits.
The new use cases are joining 16 consortiums in stage 1 of this pilot project. There are specific goals that need to be achieved in this new phase, one of which is to design and validate privacy technologies which will enable Drex to function effectively without compromising on the privacy policies.
Privacy proposals went down during the first pilot stage, and consequently, the central bank pushed the launch of Drex further to 2025. Their strategy is to reclaim the lost time by trying out new use cases within the remaining period. However, Drex will not be presented to the market until the warranted privacy features are met. This puts into doubt the commencement of operations of Drex, and a projection that was once hopeful of its introduction in 2025 now looks impossible given the time constraints.
Joao Pedro Nascimento, President of the Brazilian Regulatory Body, during the announcement of the new CBDC pilot phase, was quick to point out that tokenization was here to stay and had good prospects. He further stated that cryptocurrency must be assimilated into the financial system but in compliance with CBDC pilot legal requirements.
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Brazilian Crypto Giants Set To Launch Stablecoin Amid CBDC Pilot Phase
Bitso, Mercado Bitcoin, and Foxbit have partnered to introduce BRL1, a stablecoin tied to the Brazilian real. It will operate on the Ethereum and Polygon networks, with Cainvest providing liquidity for trading pairs like BTC and ETH.
More trading options are expected to be introduced over time. This move highlights the shift in the stablecoin market as countries look to develop digital currencies that reflect their own national currencies, not just the US dollar. With BRL1, these three key players in Brazil’s crypto scene aim to leverage the rising interest in stablecoins across the country.
Aim of the Brl1 Real-Pegged Stablecoin in Brazil
Brl1 will be launched later this year and will aim at facilitating the exchange of transaction between local exchanges. This will render trading in and out of cryptocurrencies simpler and go around the use of conventional fiat currencies. Cainvest, a core member of the launch group who is one of the largest liquidity providers in the Yoana battalion, will manage the editing brl1 in conjunction with cover BTC, ETH and other optional tokens.
Mercado Bitcoin’s new business director Fabricio Tota who leads the company has commented that the creation of brl1 has much to do with solving the problems between the participants of the crypto market and the traditional banking system.
Since the Launch of Brazil’s Drex CBDC pilot has entered an important phase, seeking its development to apply for more complex use-cases will help enhance privacy. The Central Bank of Brazil is advocating more differing ideas that can foster more growth of the platform. At the same time, the market launch of BRL1 by Bitso, Mercado Bitcoin and Foxbit on Ethereum and Polygon marks a turning point in the case of countries like Brazil. This will encourage others to design their official digital currencies instead of US dollars.
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