Fenasbac and the Central Bank of Brazil, together with Fenasbac the National Federation of Associations of Central Bank Servers selected nine projects to help them monitor and support the different applications for a Brazilian central bank virtual currency (CBDC), also known as the digital real. Aave, Banco Santander and Mercado Bitcoin are some of the examples that could demonstrate how a virtual real might be used.
Nine Digital Real Projects are selected for the LIFT Challenge
Fenasbac, the Central Bank of Brazil and Fenasbac organized the LIFT Challenge. Nine projects were selected to present diverse ideas about how a digital real CBDC (central banks digital currency) could be integrated into various applications. From 47 submitted proposals, 43 organisations presented 43 projects. The Laboratory of Financial and Technological Innovations(LIFT) chose these nine interesting ones.
Companies from around the globe were interested in the challenge, which attracted attention from organizations from the United States of America, Israel, Mexico and Portugal. The central bank provided the following information regarding the selection criteria for these projects.
[The central bank]A balance was sought between the diverse portfolio of proposal presented to the laboratory, and the necessity for thorough monitoring of the projects selected.
Project Diversity
These nine approved projects are quite different from each other and aim to incorporate the digital real in different applications. This includes delivery versus payments solutions, payment and payment solutions and internet of things (IoT), as well as defi apps and dual offline payment propositions.
The nine selected proposals were presented by Aave, Banco Santander Brasil, Febraban, Giesecke + Devrient, Itaú Unibanco, Bitcoin Market, Tecban, VERT, and Visa do Brasil. Giesecke + Devrient’s proposal, for example, seeks to use the CDBC as a tool to solve the problem of dual offline payments.
Aave (the decentralized finance protocol) also proposed a project which would allow loans to be offered while maintaining compliance with financial regulations. This could be done using liquidity pools and defi tools such as liquidity pools. Itau’s Unibanco project will center on using the currency to handle international payments, linking this with the development of an application for Colombian users. Visa do Brasil could use the token to fund SMEs using a Defi Application.
According to a press release, the Central Bank of Brazil wants to examine all of these applications in order to better understand the use of digital currencies. It also has the ambition of creating its own digital currency.
How do you feel about the Central Bank of Brazil’s selection of nine projects? Leave a comment below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.