Largest Crypto Exchange in Brazil Has Teamed Up with Stellar to Develop a CBDC
Mercado Bitcoin will work on one of the nine projects promoted by the Laboratory of Financial and Technological Innovations of Brazil (LIFT), which was created to develop a "minimum viable product (MVP)" for a CBDC that meets the goals of the Brazilian government, according to an official post shared by the Stellar Foundation.
In this situation, a "Minimum Viable Product" would be a CBDC solution that is functional enough to meet the Central Bank of Brazil's minimum requirements, thus giving the best possible product with the least amount of effort.
The Central Bank of Brazil (BC) and the National Federation of Central Bank Servers Associations backed the project (Fenasbac). Furthermore, all initiatives will focus on various use cases for the Central Bank of Brazil's planned CBDC.
Mercado Bitcoin Intends to Meet the Expectations of the Brazilian Central Bank
Mercado Bitcoin CEO Reinaldo Rabelo stated that the company hopes to develop powerful solutions based on Stellar's blockchain technology. This should be sufficient to meet all of the Brazilian CBDC's review and future approval criteria.
"We are in a consortium of companies with 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 new CBDC will be dependent on the growth of significant financial and technological firms. Several well-known financial institutions compete with Mercado Bitcoin, including Visa, Microsoft, Aave, and ConsenSys. Brazil is attempting to establish a CBDC based on the development of significant financial and technical brands. Brazil's Central Bank Governor, Roberto Campos Neto, has stated that the CBDC might be deployed in the second half of 2022. However, similar to the CBDC in Europe, they will initially roll out a pilot version before becoming public.