Santander Private Banking Archives

Brazil’s central bank (BCB) has taken a significant step forward in its Central Bank Digital Currency (CBDC) journey. On Wednesday, it announced the selection of 13 participants for the second phase of its CBDC pilot, known as Real Digital. This stage, called Drex, is focused on expanding the testing of financial services using advanced technologies like smart contracts. Global and Local Collaborations in Drex Pilot The BCB, together with Brazil's Securities and Exchange Commission (CVM), reviewed 42 proposals for this phase. Out of these, 11 projects will be overseen by the BCB, while the CVM will supervise two. Global and local players, including Visa, XP, and Nubank, have been chosen to optimize foreign exchange market operations. Visa, collaborating with Brazilian brokerage XP and digital bank Nubank, aims to streamline the forex market. Meanwhile, Spanish banking giant Santander will focus on automobile operations and lending initiatives related to decarbonization. Other key participants in the Drex pilot include local financial institutions such as Bradesco, Itaú Unibanco, and the Brazilian stock exchange B3. This diverse participation highlights Brazil’s commitment to incorporating both global and domestic expertise into its digital currency development. The BCB intends to evaluate the application of smart contracts overseen by outside players during this second stage. These contracts will demonstrate the potential of blockchain technology in practical applications by providing a range of financial services. The central bank is preparing for even greater progress, as it intends to invite proposals from businesses interested in participating in the Drex pilot again in the third quarter of 2024. The BCB anticipates finishing testing related to smart contract adoption by the middle of 2025. In May 2023, Brazil embarked on its Real Digital adventure, with 14 participants in the initial phase. The goal of this most recent phase is to hasten the nation's development into a CBDC ecosystem that operates flawlessly.

Santander Private Banking

Visa, Santander Among 13 Chosen for Brazil’s CBDC Pilot Phase Two

Santander Private Banking Embraces Cryptocurrency Trading for Swiss Accounts