Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Brazil's CBDC pilot supported by Microsoft and Chainlink

Brazil's CBDC pilot supported by Microsoft and Chainlink

GrafaGrafa2024/11/20 13:37
By:Mahathir Bayena

Banco Central do Brasil has initiated phase two of its Drex central bank digital currency (CBDC) pilot, focusing on enhancing trade finance and cross-border transactions.

This phase involves partnerships with Microsoft, Chainlink (CRYPTO:LINK), Banco Inter, and 7Comm, integrating blockchain technology to streamline trade settlements.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will be used to support secure, cross-platform transactions, enabling delivery-versus-payment (DvP) mechanisms.

These mechanisms aim to ensure that asset transfers are only completed upon payment confirmation, promoting better transparency and efficiency in transactions.

The pilot will also incorporate payment-versus-payment (PvP) solutions for simultaneous currency settlements.

Microsoft will provide the necessary cloud infrastructure to meet the technical demands of the project.

Banco Inter, a digital bank in Brazil, will lead the implementation of the Drex platform.

"We see collaborating in this project with technology leaders like Microsoft and Chainlink Labs as a transformative opportunity to expand market reach and improve the health of the Brazilian market," stated Bruno Grossi, Head of Emerging Technologies at Banco Inter.

Phase two includes the tokenisation of electronic bills of lading (eBOL), contributing to a more efficient cross-border trade system.

The pilot will focus on decentralisation, privacy, and programmability challenges while exploring the use of tokenised assets within banking operations.

This initiative is set to run until 2025 and aims to introduce new solutions such as liquidity pools for government bonds and international trade.

The Drex pilot highlights Brazil’s approach to merging blockchain technology with financial systems to boost economic efficiency.

Meanwhile, other firms, including Ripple, are expanding cross-border payment options, signaling a broader adoption of blockchain in Brazil's financial sector.

At the time of reporting, the Chainlink (LINK) price was $14.58.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

US spot bitcoin ETFs surpass $100 billion in assets amid bitcoin's record rally

The total net asset value of the 12 spot bitcoin ETFs in the U.S. reached $100.55 billion on Wednesday.Bitcoin has repeatedly hit all-time highs over the past few weeks — currently trading at around $97,094.

The Block2024/11/21 09:33