Mercado Bitcoin – the largest cryptocurrency exchange in Brazil – will reportedly participate in the country’s pilot project to launch a digital real.

The central bank intends to issue such a financial product in 2024.

The List of Contributors

As reported by a local media outlet, Banco Central do Brasil has authorized Mercado Bitcoin to take part in the CBDC development. Speaking on the matter was Fabricio Tota – director of new business at the exchange:

“Our participation validates the Central Bank’s intention to bring innovation to the financial system with those who had already been working with this technology and not just with the incumbents who appropriated it.”

Other project participants include well-known companies such as the payment processing giant Mastercard, the financial software fintech Sinqia, brokerage firm Genial, and others.

Brazil’s central bank has previously outlined that only regulated financial institutions with direct access to the National Financial System (SFN) network can assist the CBDC efforts.

The consortium intends to participate in all aspects of the test, including wholesale, retail, and National Treasury securities negotiations.

The central bank aims to release a CBDC next year. According to the initial plan, the monetary product will be a blockchain-based instrument that supports retail transactions and is backed by customer bank deposits.