Brazil's Central Bank Selects 13 Participants for Next Phase of Real Digital Pilot, Testing Smart Contracts

The Brazilian central bank, known as BCB, has just announced the selection of 13 participants for the second phase of its digital currency pilot, called Real Digital.

In this phase, the BCB and the local Securities and Exchange Commission, or CVM, received 42 proposals. Out of those, the BCB will oversee 11 projects, while the CVM will supervise two.

So, what does this mean? The infrastructure developed for this pilot will now test financial services using smart contracts. These contracts will be created and managed by third-party participants on the platform.

Among the notable participants is Visa. They will work with Brazilian brokerage XP and digital bank Nubank to improve the foreign exchange market. Additionally, the Spanish bank Santander has been selected to handle projects related to automobile operations and lending focused on decarbonization.

Other important local financial institutions, like Bradesco, Itaú Unibanco, and the local stock exchange B3, will also be involved in this phase.

Looking ahead, the BCB plans to open a new call for firms interested in joining the Drex pilot in the third quarter of 2024. They aim to test the implementation of smart contracts by the end of the first half of 2025.

It’s worth noting that back in May 2023, the BCB selected 14 participants for the initial phase of the Real Digital pilot.