Banco BBC Digital, the financial arm of Simpar (SIMH3), is one of 14 companies selected to participate in the Real Digital pilot, a kind of Brazilian “cryptocurrency” that should be available to the entire population by the end of 2024.
Simpar is a holding company that also manages the JSL (JSLG3), MOVIDA (MOVI3), VAMOS (VAMO3), Automob, CS Brasil and CS Infra brands.
In total, the Central Bank analyzed proposals from more than 100 financial organizations from different segments. Banco BBC Digital was chosen from the group to which it belongs, formed by eight other institutions associated with the Brazilian Association of Banks (ABBC).
Of the various selected financial institutions, Banco BBC Digital will participate in the Real digital pilot
In addition to the company, representatives from financial payment institutions, cooperatives, public banks, crypto service developers, operators of financial market infrastructures and payment scheme makers were selected. The implementation of the pilot project will start in the coming weeks, after it has been integrated into the Central Bank’s test platform.
In a note to live coinsemphasized Paulo Caffarelli, CEO of Banco BBC Digital, that the action brings innovations to the Brazilian financial market.
“Being part of an innovative action for the Brazilian financial market reinforces one of our business objectives, which is to develop tailor-made products for customers inside and outside the Simpar Group ecosystem. The fact that our project was chosen among other major Brazilian institutions shows that we are on the right track.”
The consortium of which Banco BBC Digital is a member must analyze privacy and programmability issues by studying a specific case, which consists of the negotiation of a federal public bond between customers of different financial institutions, as the transaction involves the exchange of information between multiple agents.
The company will also have the role of analyzing whether the blockchain technology used by the national currency meets the regulatory compliance requirements set by the national financial system when it is widely used.
Banks are preparing for testing with Real digital
Since it is a project of the Central Bank of Brazil, Real digital required participants to be regulated companies. However, some who do not have direct autarchy regulation have managed to enter through consortia with other companies.
In any case, Wallace Jagiello, CIO of BBC Digital Bank, points out that the way of testing the new technology is similar to what happened with PIX and Open Finance.
“As with Pix and Open Finance, this is the way to test new technologies, collaborate to develop an important project for society and prepare for the next wave of innovation in the Brazilian financial market.”
The pilot of the digital Real must undergo testing with blockchain technology by the end of 2023. Finally, the BC hopes to release the final version of the new national currency by 2024.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
