Lithosphere in talks with BCB for the digital real

By Raffaele Redi

The launch of the pilot is scheduled for 2023.

The logo of Banco Central do Brasil on branch building                                 
Brazil has been exploring a central bank digital currency since 2020 – Photo: Shutterstock.
                                

Lithosphere Blockchain has announced it is in talks with the Central Bank of Brazil (BCB) to launch its Digital Real CBDC trial.

The Lithosphere platform, developed by KaJ Labs, a Seattle blockchain firm, said it initiated discussions with the Central Bank of Brazil to partner on the countrys digital real rollout.

The launch of the pilot is scheduled for 2023 according to a central bank digital currency (CBDC) implementation report by BCB. It also states that in 2022, the institution will focus on the Proof-of-concept and Innovation lab steps.

Brazil has been exploring a central bank digital currency (CBDC) since 2020 and Banco Central do Brasil (BCB) president, Robertos Campo has indicated that the central bank is “making progress” and could be ready to digitalise by 2022, provided the infrastructure and necessary conditions for implementing digital currency are met.

The partnership with Lithosphere

Lithosphere would assist with distributed ledger technology (DLT), tokenising the bonds and the wholesale payment token using its custom blockchain interoperability solutions.

The trial with Brazils central bank would explore both forms of tokenised money to settle debenture (loan agreements) or bond transactions, to be issued, settled and cleared on a permissioned blockchain.

The Brazilian Pix

The country’s PIX instant payment system launched in November 2020.

As Lithosphere explains, the PIX system enhances the speed of interbank payments and makes them less expensive for individuals, businesses and government entities. PIX enables users to transfer and receive payments via smartphone in seconds, even on non-business days.

It has the potential to form the backbone for a larger CBDC, fostering financial inclusion, increased security, convenience, efficiency, innovation, and financial tools for those without traditional bank accounts.

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