1. Digital Real Pilot Project
2. Themes and Participating Companies
3. Reinforced Cryptocurrency Regulation in Brazil

Brazil's Central Bank (BCB) has released a list of 13 participants for the next phase of the Digital Real (Real Digital) pilot project, which will focus on testing infrastructure and new financial services.

Digital Real Pilot Project

The Central Bank of Brazil, along with the Securities and Exchange Commission (CVM), announced the projects and companies selected for this critical phase of testing. Out of 42 submitted use case proposals, only 13 were chosen. The phase will focus on testing infrastructure, particularly how financial services will operate on the Drex Pilot platform. These services will be implemented using smart contracts managed by third parties.

Themes and Participating Companies

The next phase of the pilot project will involve 16 major companies, including giants like Visa and Santander, as well as Brazilian Credit Bank, Banco Inter, Itaú Unibanco, and Bradesco. Even tech giants Microsoft and Google have joined the project. Some of the phase’s themes include credit collateralized in CDBs (Certificate of Bank Deposits), foreign exchange market optimization, and financing international trade operations. Banco Inter will handle trade finance, while XP and Visa will focus on foreign exchange market optimization. Agribusiness transactions and real estate deals will also be tested in this phase.

Reinforced Cryptocurrency Regulation in Brazil

Meanwhile, Brazil’s cryptocurrency regulation has been steadily advancing. In June 2023, the government introduced a new law called the Legal Framework for Virtual Assets, and now the Central Bank of Brazil is responsible for ensuring crypto companies comply with it. The authorities have also been closely monitoring tax compliance. In June, Brazil’s tax authority requested foreign crypto exchanges to clarify their operations within the country. Brazilians held over $246 billion in crypto assets in 2023, a sharp rise from 2022 and even the bullish 2021. Digital wallets are also becoming increasingly popular in Brazil, with recent reports showing that nearly half of all Brazilian consumers now use digital wallets for their transactions. This trend is particularly surprising among older generations; around 31% of baby boomers reported using digital wallets for online purchases, even surpassing the younger generations in some cases. Local companies like Binance and Mercado Bitcoin are expanding their services due to strong demand for crypto-related payment solutions.

The Central Bank of Brazil is actively advancing the Digital Real pilot project, collaborating with major market players. At the same time, intensified cryptocurrency regulation suggests further legalization and development of the crypto industry in the country.