Brazil’s Biggest Exchange Partnered With Stellar To Launch A CBDC

Brazil’s biggest exchange partnered with Stellar to launch a CBDC and Mercado Bitcoin will join forces to boost its efforts this year so let’s read more today in our Stellar News.

On May 24, Mercado Bitcoin as the biggest crypto and digital asset platform in Latin America, announced a new partnership with the Stellar Development Foundation to take part in the development of the Brazilian central bank’s digital currency. As per the post by the Stellar Foundation, Brazil’s biggest exchange partnered with Stellar and will work on one of the nine projects by the Laboratory of Financial and Technological Innovations of Brazil to develop a minimum viable product for a CBDC that will meet the goals of the Brazilian government.

The Minimum viable product will be a CBDC solution that is functional enough to satisfy the minimum requirements that were set by the Central Bank of Brazil and to provide the best possible product with almost no effort. The proejct was supported by the Central Bank of Brazil and the National Federal of the Central Bank Servers Association so all other projects will focus on different use cases for the upcoming CBDC to get issued by the Central Bank of Brazil. Mercado Bitcoin also expects to meet the Central Bank of Brazil’s expectations.

The CEO of the bank Reinaldo Rabelo said the company expects to build robust solutions by using Stellar’s blockchain technology. This should be enough to meet the criteria required for the evaluation and the future approval of the Brazilian CBDC:

“We are in a consortium of companies that have the structure and ambition to build robust solutions for the financial market through blockchain technology. Utilizing the Stellar network will allow us to deliver a complete case for evaluation by the Central Bank.”

The CEO of Stellar Development Foundation Denelle Dixon said that Stellar is prepared to explore the many use cases for the future Real Digital as the CBDC so as such, the new partnership will allow them to help Mercado Bitcoin in developing a blockchain project which can change Brazil’s way of dealing with money:

“Stellar was designed for asset issuance, and its built-in compliance tools give Mercado Bitcoin a strong foundation to develop a solution with the features that Bacon expects to see”

The new CBDC project will rely on the development of other financial and technology companies. The Bank’s BTC competitors include plenty of established names in the finance industry like ConsenSys, Aave, Microsoft, and Visa which means that Brazil is looking to create a CBDC which counts on the development of other financial and technological brands. Brazil’s Central Bank governor Roberto Campos Neto said that CBDCs should be launched during the second half of 2022 but like the European CBDC they will roll out a pilot version first before the official launch.