The Brazilian cryptocurrency exchange, Mercado Bitcoin announced on Tuesday its partnership with the Stellar Development Foundation (SDF). The company said that it intends to develop one of the nine projects selected for the LIFT Challenge Real Digital, promoted by the Central Bank of Brazil.
The LIFT Challenge Real Digital is a collaborative environment carried out by the Central Bank of Brazil (Bacen), in partnership with the National Federation of Central Bank Server Associations (Fenasbac). With the announcement of the Stellar integration, The SDF will join the consortium created by Mercado Bitcoin to develop solutions for Real Digital and which also has CPQD and ClearSale.
The CEO of Stellar Development, Denelle Dixon, said that the Stellar network is ready to support the Bitcoin Market and the Central Bank of Brazil as they explore use cases for the future Real Digital. “Stellar was designed for asset issuance, and its built-in compliance tools give Mercado Bitcoin a solid foundation to build a solution with the features Bacen expects to see,” he claimed.
According to the statement, Mercado Bitcoin selected the Stellar network due to the speed, efficiency and security of the protocol.
“We are in a consortium of companies that have the structure and ambition to build robust solutions for the financial market through Blockchain technology. Using the Stellar network will allow us to deliver a complete case for evaluation by the central bank”, said Reinaldo Rabelo, CEO of Mercado Bitcoin.
In addition to the consortium created by Mercado Bitcointhe Central Bank of Brazil also chose the DeFi protocol, Aave, and ConsenSys in partnership with Visa and Microsoft to develop use cases for Real Digital.
In April, Cointelegraph reported that the president of the Central Bank of Brazil had confirmed that the country’s digital national currency pilot will begin this year. However, this release 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 enable 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 native media in a new environment and conditions to achieve significant efficiency gains”, Campos Neto said last year.
Fabio Araujo, coordinator of the Real Digital project within Bacen, recently stated that the central bank intends to allow the construction or interconnection of the national financial system with decentralized finance (DeFi) and with smart contracts. These are, in his opinion, the great contributions of the blockchain and cryptocurrency ecosystem.
“These fundamental points of the cryptocurrency environment we intend to put them within our regulatory perimeter to do a massive thing and give access to more people. We want to bring in the technologies of smart contracts and Defi to be able to reach a broader public”, said.
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