Brazil’s central bank has revealed the firms it will work with on a central bank digital currency ( CBDC ) pilot project, and cryptocurrency-obsessed neobank Nubank is on the list.
According to the official release of the Central Bank, the bank wants to “evaluate the benefits” of the digital reality prototype using a specially developed platform.
Nubank is one of the fastest growing neobanks in the Latin American region and has achieved unicorn status.
In recent years, the firm has also been adding a number of cryptography-related features to its applications.
He also launched his own crypto asset.
And after initially shunning crypto companies from the pilot project, it appears that the Central Bank has allowed a number of players in the sector to join.
Nubank will be joined by companies such as Itaú, another major traditional financial services provider with cryptocurrency interests.
Late last year, Itaú launched cryptocurrency storage services.
A number of small cryptocurrency-only firms have been chosen to work on the project, albeit as part of consortia that also include larger companies.
This number includes the likes of domestic crypto exchange Foxbit.
Foxbit was included in a consortium of firms that also includes investment provider Banco Arbi and neobank Pinbank.
The nTokens company, which works with blockchain and stablecoins, joined the same consortium.
Other notable firms to join the pilot include Microsoft, Visa and Santander.
Domestic banking heavyweights such as BTG Bank were also included in the list.
What does the Central Bank of Brazil hope to achieve with its CBDC?
The central bank says its platform uses blockchain and distributed ledger technology for “tokenized asset transactions.”
The pilot will not foresee real tests yet.
Instead, it will use a “simulated environment” that does not use “transactions or real-world values.”
The bank wants to test whether its coin can “promote greater efficiency, transparency and security of financial transactions.”
The bank has previously stated that its CBDC will be developed in such a way as to facilitate the development of domestic business.
