The Brazilian Central Bank (BCB) has added the largest local crypto exchange, Mercado Bitcoin, to the pilot of the digital real, the country’s central bank digital currency (CBDC).
The BCB announced the decision on Thursday, saying that Mercado Bitcoin was selected based on its “expertise in the digital asset market and its commitment to compliance with applicable regulations.”
Mercado Bitcoin is a leading crypto exchange in Latin America, with over 2 million users. The exchange offers a variety of services, including cryptocurrency trading, custody, and staking.
The BCB’s decision to add Mercado Bitcoin to the CBDC pilot is a sign of the growing acceptance of cryptocurrencies by central banks around the world. CBDCs are digital currencies issued by central banks that are designed to be used alongside traditional fiat currencies.
The BCB has been exploring the possibility of issuing a CBDC since 2022. The pilot is a key step in the development of the digital real, and it is expected to last for several months.
During the pilot, Mercado Bitcoin will help the BCB to test the technical aspects of the digital real, including its security, scalability, and usability. The exchange will also provide feedback on the design of the digital real and its potential impact on the Brazilian economy.
The addition of Mercado Bitcoin to the CBDC pilot is a significant development for the Brazilian crypto industry. It is a sign that the BCB is taking cryptocurrencies seriously, and it could help to legitimize the industry in the eyes of regulators and investors.
The BCB has said that it plans to launch the digital real in 2024. However, the timeline could change depending on the results of the pilot.
What does this mean for the future of cryptocurrencies in Brazil?
The addition of Mercado Bitcoin to the CBDC pilot is a positive development for the future of cryptocurrencies in Brazil. It shows that the BCB is open to working with the crypto industry, and it could help to legitimize cryptocurrencies in the eyes of regulators and investors.
The pilot is also likely to provide valuable insights into the potential impact of CBDCs on the Brazilian economy. This information could help the BCB to make informed decisions about the future of the digital real.
Overall, the addition of Mercado Bitcoin to the CBDC pilot is a positive development for the Brazilian crypto industry. It is a sign that the BCB is taking cryptocurrencies seriously, and it could help to legitimize the industry in the eyes of regulators and investors.
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