Itau Unibanco Selected by Central Bank of Brazil to Build Real-Pegged Stablecoin Solution – News Bitcoin News

Itau Unibanco, one of the biggest bank conglomerates in Brazil, has been selected by the country’s central bank to develop a system with a stablecoin pegged to the value of the Brazilian real. Itau’s system was one of the eight proposals selected by the Central Bank of Brazil as part of LIFT Lab, an annual initiative focused on financial innovation.

Itau Unibanco Develops Digital Real Stablecoin

In its pilot program to launch its digital currency, the CBDC (central bank digital currency), the Central Bank of Brazil has made significant progress. Itau Unibanco has been chosen by the bank to create a decentralized financial solution. This includes the building of a stablecoin tied to the real.

It will provide functions similar to those found in liquidity pools. However, it will link the real with stablecoins that represent fiat currencies all around the world. The application could support asset pooling and alternative investments. It also may allow for the management and custody these assets through blockchain-based software.

Itau Unibanco presented the project as one of eight projects that was selected by the Central Bank of Brazil in the Laboratory of Financial and Technological Innovations Lab (LIFT Lab), a program that promotes financial innovation. It is currently in its fifth edition. Andre Siqueira from the Central Bank of Brazil’s tech department stated that the program had one objective.

LIFT Lab is an opportunity for interaction with society in which we present the Central Bank’s value in building innovation in the national financial system. LIFT Lab celebrates five years in operation with the release of an updated edition that now covers 8 projects.

Additional Projects

Other projects selected to be part of 2022’s LIFT Lab include a solution for granting credits to vulnerable people in the Brazilian favelas that involves people of the community as facilitators of these grants, to be developed by the G10 bank; a system that would serve as a bridge to exchange the digital real with other existing blockchains using the Celo blockchain; and a solution for tokenizing assets on the blockchain to decentralize credit risks.

Last March’s digital real-focused challenge, the LIFT presented nine projects that were chosen to be studied by the Central Bank of Brazil.

Itau Unibanco will be developing a stablecoin solution. What are your thoughts? Leave your comments below.

Sergio Goschenko

Sergio, a Venezuela-based cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. His background is in computer engineering, but he also lives in Venezuela and was impacted at the social level by the crypto boom. He offers an alternative perspective on the success of cryptocurrency and the benefits it has for the underbanked.

Image – Everson Mayer, Pixabay and Wiki Commons

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