Itau Unibanco Selected by Central Bank of Brazil to Build Real-Pegged Stablecoin Solution
Itau Unibanco, one of the biggest bank conglomerates in Brazil, has been selected by the country’s central bank to develop a system with a stablecoin pegged to the value of the Brazilian real. Itau’s system was one of the eight proposals selected by the Central Bank of Brazil as part of LIFT Lab, an annual initiative focused on financial innovation. Itau Unibanco to Develop Digital Real Stablecoin
The Central Bank of Brazil is advancing in its pilot program for the launch of its central bank digital currency (CBDC), the digital real. The bank has selected Itau Unibanco, one of the biggest banks in the country, to build a decentralized finance solution that includes the construction of a stablecoin pegged to the real.
The application will include functions commonly present in liquidity pools, but linking the real with other stablecoins representing fiat currencies from all over the world. While not much has been disclosed regarding the project at this point, the application might support asset pooling, alternative investments, and management and custody of these assets using blockchain-based software.
The project presented by Itau Unibanco is one of eight that were selected by the Central Bank of Brazil as part of the Laboratory of Financial and Technological Innovations (LIFT) Lab, a program for financial innovation that is now in its fifth edition. About the objective of the program, Andre Siqueira, Head of the tech department at the Central Bank of Brazil, stated:
LIFT Lab is an opportunity for interaction with society in which we present the Central Bank’s value in building innovation in the national financial system. The release of a new edition, now covering 8 projects, represents an important milestone for LIFT Lab, which completes 5 years of operation. Other Projects Presented
Other projects selected to be part of 2022’s LIFT Lab include a solution for granting credits to vulnerable people in the Brazilian favelas that involves people of the community as facilitators of these grants, to be developed by the G10 bank; a system that would serve as a bridge to exchange the digital real with other existing blockchains using the Celo blockchain; and a solution for tokenizing assets on the blockchain to decentralize credit risks.
The LIFT also presented a digital real-focused challenge last March, where nine projects were selected to be studied and accompanied by the Central Bank of Brazil. Tags in this story Brazil, Central Bank of Brazil, digital real, itau, itaú unibanco, lift, real pegged stablecoin, real stablecoin
What do you think about the stablecoin solution to be developed by Itau Unibanco? Tell us in the comments section below. Sergio Goschenko
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. UN Human Rights Chief Voices Concern Over Assange Extradition Case, Wikileaks Continues to Raise Large Sums of Crypto NEWS | 7 hours ago Argentinian Province Mendoza Starts Accepting Tax Payments in Crypto NEWS | 12 hours ago
Image Credits: Shutterstock, Pixabay, Wiki Commons, Everson Mayer / Shutterstock.com Previous articleUN Human Rights Chief Voices Concern Over Assange Extradition Case, Wikileaks Continues to Raise Large Sums of Crypto Next articleVeve Partners With Marvel to Drop Limited Edition NFT Covers Featuring Spider-Man, Black Panther Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Draft Law Regulating Aspects of Crypto Taxation Submitted to Russian Parliament Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method