The digital currency to be issued by the Central Bank of Brazil, the digital real, has been named by Fireblocks as one of the most evolved CBDCs in the world. According to the crypto company, the project may interact with blockchain networks and digital assets classified as stablecoins.
The Israeli company is assisting the Central Bank in creating the digital real and claims that Brazil is ahead of other countries regarding the CBDC, which is still in development.
In an interview with InfoMoney, Fireblocks’ director of market infrastructure and CBDC, Varun Paul, said he is following the creation of other digital currencies issued by Central Banks and the Brazilian project is one of the most developed in the market. According to him, Fireblocks intends to offer technological solutions for developing the Brazilian CBDC.
“We have been watching the developments [of CBDCs] worldwide. Brazil is one of the most developed, so we are talking to the banks and the Central Bank to understand more about the ecosystem and checking where we can leverage our technology to support them.”
Development of the digital real
Brazil is developing its own CBDC, which should be launched between 2023 and 2024. For Varun Paul, the Central Bank needs to develop a solution for intermediating credit supply through the digital real.
Thus, Fireblocks can play an important role in decentralizing the Brazilian CBDC by offering custody services for the digital asset under development.
Unlike other CBDC projects, the digital real is focused on becoming programmable money, so Fireblocks believes the digital currency is more advanced than in other countries.
In China, for example, the digital yuan CBDC is focused on instant payments. But, within the group of countries that make up the G20, the digital real is one of the most developed projects, says the director of market infrastructure and CBDC at Fireblocks.
The company is involved in one of the digital real pilot projects being discussed by Lift, an experimental accelerator program. The Brazilian CBDC, still under development, may integrate with the crypto market, according to a webinar hosted earlier by the country’s Central Bank.