Brazilian exchange Mercado Bitcoin announced its partnership with Stellar Development Foundation (SDF) on Tuesday. The company said it plans to develop one of the nine projects selected for the LIFT Challenge Real Digital, promoted by the Central Bank of Brazil.
The Real Digital LIFT Challenge is a collaborative environment implemented by the Central Bank of Brazil (Bacen), in partnership with the National Federation of Central Bank Server Associations (Fenasbac). Once the Stellar integration was announced, SDF will join the consortium created by Mercado Bitcoin to develop solutions for Real Digital that also includes CPQD and ClearSale.
Denelle Dixon, CEO of Stellar Development, said the Stellar network is ready to support Mercado Bitcoin and the Central Bank of Brazil as they explore use cases for the future of Real Digital. “Stellar was built for asset issuance, and its built – in compliance tools give Mercado Bitcoin a solid foundation for developing a solution with the features that Bacen expects,” she said.
According to the statement, Mercado Bitcoin chose Stellar network because of the speed, efficiency and security of the protocol.
“We are part of a consortium of companies with the structure and ambition to build robust solutions to the financial market through blockchain technology. By using the Stellar network we will be able to provide a complete case for assessment by the Central Bank,” he said. said Reinaldo Rabelo, CEO of Mercado Bitcoin.
Apart from the consortium created by Mercado Bitcoin, the Brazilian Central Bank has chosen the DeFi Aave (AAVE) protocol and ConsenSys in partnership with Visa and Microsoft to develop use cases for the nation’s Real Digital.
In April, Cointelegraph reported that the President of the Central Bank of Brazil had confirmed that the country’s sovereign digital currency pilot project will be launched this year. However, this version 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 provide access to smart contracts and decentralized finance on the CBDC platform.
“The Real Digital initiative is a response to the rapid progress of digital transformation and society’s demand for indigenous methods of settlement in a new environment, conditions for achieving significant efficiencies,” Campos Neto said last year.
Fábio Araujo, coordinator of the Real Digital project at the Central Bank, recently said that the Central Bank aims to enable the construction or interconnection of the national financial system with decentralized finance (DeFi) and smart contracts. These, he said, are major contributions of the blockchain ecosystem and cryptocurrencies.
“On these fundamental points of the cryptocurrency environment, we plan to bring them into our regulatory perimeter to achieve something huge to give more people access. We want to introduce smart contract technologies and Defi so that we can reach a wider audience, “he said.
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