Itau Unibanco, one of the largest banking conglomerates in Brazil, has been selected by the country’s central bank to develop a system with a stable currency pegged to the Brazilian real. Itau’s system is one of eight proposals selected by the Central Bank of Brazil as part of the LIFT Lab, an annual initiative focused on financial innovation.
Itau Unibanco to develop Digital Real Stablecoin
The Central Bank of Brazil is moving forward with its pilot program to launch the Central Bank Digital Currency (CBCC) Digital Real. The bank chose Etown Unibanco, one of the largest banks in the country, to build a decentralized financial solution that includes the construction of a stable coin.
The application includes functions commonly found in liquid pools, but connecting real to other stablecoins representing fiat currencies from around the world. While not much has been revealed about the project at this point, the application could support asset pooling, alternative investments, and the management and protection of these assets using blockchain-based software.
The project presented by Itau Unibanco is one of eight selected by the Central Bank of Brazil as part of the Laboratory of Financial and Technological Innovations (LIFT), a financial innovation program now in its fifth edition. André Siqueira, Head of Technology at the Central Bank of Brazil, said of the program’s aims:
LIFT Lab is an opportunity to engage with the community where we can deliver central bank value by building innovation in the national financial system. The release of a new edition now covering 8 projects represents an important milestone for LIFT Lab, completing 5 years of work.
Other projects are presented
Other projects selected to be part of the 2022 LIFT Lab include a G10 Bank-developed solution to provide credit to vulnerable people in a Brazilian favela that involves community coordinators of these grants. A system that serves as a bridge to exchange digital real with other existing blockchains using the Silo blockchain; and a tokenization solution for assets on the blockchain that decentralizes credit risks.
Last March, LIFT presented a digital reality-based challenge in which 9 projects were selected to be studied and supported by the Central Bank of Brazil.
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