Lithosphere Blockchain partners with Bank of Brazil – Blockchainreporter

The Lithosphere cryptocurrency platform developed by KaJ Labs partners with the Central Bank of Brazil for the real digital deployment of the country.

Brazil is the latest country to consider digital currency as legal tender. The Lithosphere cryptocurrency platform developed by KaJ Labs, a Seattle-based blockchain company, has started discussions with the Central Bank of Brazil to partner with the country’s real digital rollout.

Brazil has been exploring central bank digital currencies (CBDCs) since 2020. CBDCs are the digital version of a country’s fiat currency issued by its central financial authority. Banco Central of Brazil BCB presidents have indicated that the central bank is “making progress” on plans to digitize the Brazilian real and could release the central bank’s digital currency as early as 2022, provided the infrastructure and conditions necessary for the implementation of digital currency are met.

The country’s PIX instant payment system was launched in November 2020. The PIX system improves the speed of interbank payments and makes them cheaper for individuals, businesses and government entities. PIX allows users to transfer and receive payments through a smartphone in seconds, even on non-working days. It has the potential to form the backbone of a larger CBDC, fostering financial inclusion, increased security, convenience, efficiency, innovation and financial tools for those without an account. . traditional banking.

Roberto Campos Neto, president of the Central Bank of Brazil, indicated that the central bank was making progress and could release the digital currency from the central bank as soon as possible, provided that the necessary infrastructure and conditions for the implementation digital currency work are fulfilled.

According to the announcement, in these trials CBDC, informed: “Lithosphere will help with Distributed Ledger (DLT) technology, tokenizing bonds and the wholesale payment token using its custom blockchain interoperability solutions. . The essay with the Central Bank of Brazil will explore both forms of token money to settle bond or bond transactions, to be issued, settled and cleared on an authorized blockchain. “

Although none of these plans are under consideration in the government body, the country’s central bank is committed to launching a digital version of the national fiat currency Real. But even before a CBDC, the bank launched an Instant Payment PIX in November 2020 that enables 24/7 payments in up to 10 seconds through mobile apps, online banking and ATMs. The PIX system can also become the backbone of the future Brazilian CBDC.

About Lucille Thompson

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