Brazil Central Bank Selects Participants For Second Phase Of Digital Currency Pilot

According to CoinDesk, Brazil's central bank (BCB) has announced the selection of 13 participants for the second phase of its central bank digital currency (CBDC) pilot, known as Real Digital. The BCB will oversee 11 projects, while the local Securities and Exchange Commission (CVM) will supervise two. This phase, called Drex, received 42 proposals, the bank stated in a recent announcement. In this second phase, the infrastructure created for the pilot will test the implementation of financial services through smart contracts managed by third-party participants. Among the selected projects, Visa will collaborate with Brazilian brokerage XP and digital bank Nubank to optimize the foreign exchange market. Spanish banking giant Santander will work on projects involving automobile operations and lending and decarbonization. Other notable local financial entities participating in this phase include Bradesco, Itaú Unibanco, and the local stock exchange B3. The BCB also mentioned that it plans to open a new call for firms interested in participating in the Drex pilot in the third quarter of 2024. The goal is to test the implementation of smart contracts by the end of the first half of 2025. In May 2023, the BCB had selected 14 participants for the first phase of the Real Digital pilot.