In a move to promote financial innovation and inclusion, Brazil’s central bank recently approved Mercado Bitcoin’s entry into its CBDC pilot project. This decision shows the willingness of the Brazilian authorities to cooperate with players with concrete experience in the field of digital assets.
Mercado Bitcoin regains its place in the pilot project
In 2022, the Central Bank of Brazil announced the launch of a pilot project for its CBDC, the Real Real. The purpose of this pilot project is to test, evaluate the technical aspects and future viability of Brazil’s digital currency. Among the 14 participants selected for this project was Mercado Bitcoin, the largest cryptocurrency exchange in the country.
However, at the end of May, Mercado Bitcoin was excluded from the list of selected participants, as it was not yet regulated as a financial institution. The exchange finally received its payment institution license from the central bank earlier this month, allowing it to enter the pilot project.
Fabricio Tota, new business director at Mercado Bitcoin, expressed satisfaction with his company’s participation in this CBDC project. He particularly welcomed the central bank’s intention to promote innovation in the financial system by collaborating with players who already have expertise in the cryptocurrency industry.
The central bank plans to roll out Brazil’s CBDC by 2024, with participants on board the pilot program, called Real Digital Pilot, starting this month.
Also read: Mercado Bitcoin Partners with Stellar to Implement Brazilian CBDC Use Case
Financial landscape in the full digital transition
Brazil’s digital currency in the future will be backed by the real currency, the country’s national currency. This new initiative is a significant step forward for the largest country in Latin America.
With a population of 214 million, Brazil continues to attract global cryptocurrency companies. Mastercard, one of the world’s largest payment service providers, is part of the consortium selected to participate in the Digital Real pilot project.
Walter Pimenta, executive vice president of products and engineering at Mastercard Latin America and the Caribbean, spoke favorably of his participation in this pilot project. He said this:
“We are delighted to be part of the consortium selected for the Digital Real pilot project in Brazil. Mastercard continues to engage in a series of partnerships aimed at building trust and compliance within the digital asset ecosystem, while solving real-world problems. »
It is important to note that earlier this year, Binance and Mastercard launched a crypto payment card in the country. In March, Coinbase facilitated the purchase of cryptocurrencies in conjunction with local payment providers, allowing deposits and withdrawals in the local currency.