• Mercado Bitcoin – the largest cryptocurrency exchange in Brazil – will reportedly participate in the country’s pilot project to launch a digital real.
• The list of participants includes Mastercard, Sinqia, Genial and other financial institutions with direct access to the National Financial System (SFN) network.
• The central bank aims to release a CBDC next year.
Mercado Bitcoin Joins CBDC Initiative
Mercado Bitcoin – the largest cryptocurrency exchange in Brazil – will reportedly participate in the country’s pilot project to launch a digital real. Banco Central do Brasil has authorized Mercado Bitcoin to take part in the CBDC development. According to Fabricio Tota, director of new business at the exchange: “Our participation validates the Central Bank’s intention to bring innovation to the financial system with those who had already been working with this technology and not just with the incumbents who appropriated it.”
The list of participants for this project includes payment processing giant Mastercard, financial software fintech Sinqia, brokerage firm Genial and other regulated financial institutions with direct access to the National Financial System (SFN). They all intend to participate in all aspects of the test including wholesale, retail, and National Treasury securities negotiations.
Brazil’s central bank intends to issue such a financial product in 2024. The central bank aims to release a CBDC next year as per their initial plan which is going be blockchain-based instrument that supports real-time payments and 24/7 operations.
Benefits of Participation
By participating in this initiative Mercado Bitcoin can benefit from bringing innovation and technological advancement into their systems while also expanding their customer base across different sectors using blockchain based solutions.
The Brazilian Central Bank has approved Mercado Bitcoin’s participation in its CBDC development program along with other well known companies like Mastercard, Sinqia, etc., aiming for a successful launch by 2024 through blockchain based solutions supporting 24/7 operations and real-time payments.