CBDC in Brazil: Microsoft, Visa and other major players join the pilot project

Many national and international companies are signing up for the CBDC pilot project in Brazil. We have just revealed the final number of participants, highlighting large companies such as Microsoft, Visa. The first stages of the pilot project aim to explore the possibilities of Digital Real. Such an initiative is a decisive step for the largest country in Latin America.

A dozen participants in the CBDC pilot project in Brazil

In 2022, the Central Bank of Brazil announced the launch of a pilot project for its CBDC. On May 24, the central bank published the final list of participants, selected from 36 bids from individual companies and consortia. Among the 14 selected participants are major players such as Microsoft, 7COMm (a digital technology company) and the Brazilian bank Banco Inter. Visa, Santander and several Brazilian banking institutions, including Unibanco, Banco Bradesco and BTG Pactual, are also among the participants.

The Brazilian Central Bank will onboard these participants to its digital currency (crypto) platform by mid-June 2023. The current phase of the pilot project involves testing the privacy and programmability features of the platform. The tests will run through a single use case: a delivery and payment protocol for federal government securities.

A turning point in the Brazilian financial landscape

The value of the Digital Real will be indexed to the real, the national fiduciary currency. It will have a fixed supply and will be minted over time. This initiative marks a decisive step for the largest country in Latin America. With a population of 214 million, Brazil remains a hotspot for global crypto businesses. Earlier this year, Binance and Mastercard launched a prepaid crypto card in the country.

Additionally, Coinbase with the collaboration of local payment providers, has been offering crypto purchases since March. It also allowed deposits and withdrawals in the local currency. Recently, Latam Gateway obtained a license from the central bank to operate as a payment institution and issuer of electronic money.