Crypto Exchange Mercado Bitcoin Joins Brazil’s CBDC Test Program

• Brazil’s central bank has accepted two major institutions, including the bitcoin exchange Mercado Bitcoin, to join its pilot program for its national digital currency (CBDC).
• The test program is being led by Mercado and includes consortium members such as Mastercard, Genial, Cerc and Sinqia.
• The central bank plans to launch the test program in mid-June 2023.

Acceptance of Mercado Bitcoin

Brazil’s Central Bank has granted permission to two major Brazilian institutions to participate in the pilot of the country’s Central Bank Digital Currency (CBDC). One of these institutions is the major local bitcoin exchange – Mercado Bitcoin. The other institution is Caixa, a state owned bank.

Consortium Members

The consortium that is leading this pilot program consists of several members which include Mastercard, broker Genial, registrar Cerc and financial software provider Sinqia. Despite not having direct access to Brazil’s national financial network Mercado Bitcoin was accepted into the selection of 14 participants chosen by the Central Bank in May. On 2nd June however Mercado Bitcoin was granted a license as a payment institution by the Central Bank which marked a new era for them. This also shows that the Central Bank is willing to collaborate with companies that are deeply invested in blockchain technology instead of depending on conventional players only.

Central Bank Pilot Program

In mid-June 2023, Brazil’s Central Bank aims to launch its test program for their digital real currency (CBDC). Participants like Mercado Bitcoin and Caixa will help with testing out issuing CBDC treasury bills as well as analyzing distributed ledger technology and governance architecture during this phase.

Fabricio Tota’s Comments

Fabricio Tota , Director of New Business at Mercado Bitcoin expressed his company’s gratitude towards receiving this chance from Brazil’s Central Bank. He noted how this decision acknowledges their value regarding collaborating with companies who are already invested heavily into blockchain technology rather than conventional players only.