The Central Bank of Brazil announced the participants for its innovation lab. Four of the eight chosen, including Itaú, will create solutions with Blockchain.
- Itaú will create a DeFi a movement encouraging alternatives to traditional, centralized forms of financial services. liquidity how easily a cryptocurrency can be bought and sold without impacting the overall market price. fund for the Central Bank of Brazil.
- The movement is part of a public innovation program.
- The Central Bank chose 8 projects, half of which use Blockchain.
One of the leading private banks in Latin America has been selected by the Central Bank of Brazil to contribute to the creation of decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. finance solutions (DeFi).
Itaú Unibanco was one of the eight chosen by Brazil’s monetary authority to develop DeFi solutions with stablecoins as part of a technological innovation program. Specifically, a Itaú which proposes the establishment of a DeFi liquidity fund with tokens linked to currencies such as the Brazilian real and the U.S. dollar was selected.
The proposed project will be a “ platform a place to buy, sell and store cryptocurrency that, through Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and autonomous contracts, will allow custody, forex brokerage and alternative investments. “The Central Bank of Brazil explained in a statement that was quoted byThe Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.. That notice also specified:
The use case consists of creating a liquidity pool, with tokens that emulate stable currencies that have parity with the real, dollar or other fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. currency, with their functioning similar to the DeFi liquidity that operates in the digital asset market.
Itaú and other projects Blockchain selected
This will not be the first effort of Itaú in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. space. Brazil’s largest bank with more than USD $371 billion in total assets announced last month that it is developing a tokenization platform which will allow traditional financial products to be converted into tokens based digital digital technologies are these electronic tools that have the ability to generate, store or even process data. Blockchain .
The bank, which recently opened a new digital currencies unit, has also indicated plans to start offering cryptocurrency services and launch its own exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. of Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
In addition to Itaú In addition, seven other projects were also selected to participate in the Central Bank of Brazil’s innovation program, of which three will leverage money that a trader borrows from a brokerage, enabling them to gain far greater exposure to a position than what their capital allows. blockchain technology according to local media Livecoins .
According to the list released by the authority on Friday, among those selected also include Lovecrypto whose project proposes the integration of digital real with Blockchain . The aim is to facilitate the conversion of stablecoins web-based Celo into digital real, making the Brazilian currency currency is a medium of exchange that defines value. integrated with a public blockchain.
Among the projects that will use Blockchain there is also the Celso Jungbluth, which plans to create a financial asset tokenization solution to promote decentralized microcredit; and that of Nest which seeks to develop an application with business rules so that Bank Credit Note (CCB) can be integrated with stable currencies or CBDC, from Pix or TED transfers.
Central Bank of Brazil bets on innovation
The movement is framed in the celebration of the fifth edition of the Financial and Technological Innovation and Technology Laboratory (LIFT) a public program of the Central Bank of Brazil that seeks to strengthen financial inclusion. The initiative is coordinated in partnership with the National Federation of Central Bank Servants’ Associations (Fenasbac).
The head of division of the Central Bank’s Information Technology Department, André Siqueira, stressed in the statement that the program is designed to provide opportunities for innovation. Livecoins quoted Siqueira’s words:
LIFT LAB is an opportunity for interaction with society in which we present the value of BC in building innovation in SFN. The launch of a new edition, which now covers 8 projects, represents an important milestone for LIFT LAB, which completes 5 years of operation.
The innovation lab is expected to open on September 12. Developers must submit a working prototype and a report for each project by Dec. 15, according to reports.
The Central Bank of Brazil is looking for partners to advance the digital economy. In March of this year, the entity chose nine projects for its program. LIFT Challenge with the objective of evaluating use cases for a CBDC (central bank digital currency) and its technological feasibility. Among those selected were Santander , Bitcoin Marketplace y Aave .
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Article by Hannah Estefania Perez / DiarioBitcoin
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