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May 28, 2022
by Usha Yadav
Stellar Development Foundation Partners With Brazil's Mercado Bitcoin
The Stellar Development Foundation (SDF) and Mercado Bitcoin, Latin America's largest crypto exchange, have announced a collaboration to develop a project that would investigate use cases for a central bank digital currency (CBDC).
The SDF is a "non-profit organization created in 2014 to assist the open-source Stellar network's development and expansion. Unlock the world's economic potential by making money more fluid, markets more open, and people more empowered," the SDF and Stellar say.
The SDF assists in maintaining Stellar's codebase, provides support to the technical and corporate groups surrounding Stellar, and serves as a liaison with regulators and institutions."
Stellar is an "open-source network for currencies and payments" that "allows you to generate, send, and trade digital representations of any type of currency—dollars, pesos, bitcoin, pretty much anything. Stellar relies on blockchain to keep the network in sync, but the end-user experience is more like cash—Stellar is faster, cheaper, and more energy-efficient than traditional blockchain-based solutions," according to the company.
The Stellar network, which debuted in 2014, features a "native digital currency, the lumen," which is "needed in tiny amounts for initializing accounts and conducting transactions."
The goal of this new collaboration, according to the SDF press release, is to "develop one of the nine projects selected for the LIFT Challenge Real Digital, a collaborative environment run by the Central Bank of Brazil (Bacen) in partnership with the National Federation of Associations of Central Bank Servers (Fenasbac), to explore use cases for a Central Bank Digital Currency (CBDC)."
The Bacen effort intends to "define the key elements of a Real Digital infrastructure that will be capable of supporting the use cases given by the LIFT Challenge participants." "The Real Digital is expected to be launched in the second half of 2022 and, in its first phase, will be piloted for a limited audience," according to Brazil's central bank.
"It is the network of choice for additional CDBC initiatives, stablecoin issuance, and financial asset tokenization because of its unique combination of speed, efficiency, security, and compliance," according to Mercado Bitcoin.
Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.