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The largest crypto exchange in Latin America, Mercado Bitcoin, has announced that it has joined hands with the non-profit organization supporting the development and growth of Stellar, Stellar Development Foundation. The two entities aim to make a major contribution to the development of a Central Bank Digital Currency (CBDC) for Brazil.
Mercado Bitcoin partners with Stellar Development Foundation
As per the announcement, Mercado Bitcoin is gearing up to work on one of the nine projects selected for the Financial and Technological Innovations of Brazil (LIFT) Challenge Real Digital, aiming to create a “minimum viable product (MVP)” for CBDC.
Notably, LIFT is a collaborative environment introduced by the Central Bank of Brazil (Bacen) and the National Federation of Associations of Central Bank Servers (Fenasbac) to investigate CBDC use cases in Brazil.
Because of its unique combination of speed, security, efficiency, and compliance, the Stellar network is the favorite option for many entities working on CBDC projects, stablecoin issuance, and financial asset tokenization.
The CEO of Mercado Bitcoin, Reinaldo Rabelo, commented on the collaboration by stating:
“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.”
Stellar Development Foundation CEO Denelle Dixon stated that the organization will assist Mercado Bitcoin in the development of a blockchain product that has the potential to transform Brazil’s financial system.
Brazil regulators working on crypto
Roberto Campos Neto, Brazil’s Central Bank Governor, recently displayed his expectations to launch the Real Digital in the second half of 2022. However, similar to Europe’s CBDC, it will be available to a restricted audience in the first phase of its pilot program.
In addition, the bill regulating the crypto market in Brazil is reportedly set to be adopted by the National Congress by the end of the second quarter of this year.
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