Itau Unibanco Chosen by Central Bank of Brazil to Develop Real-pegged Stablecoin Solution – News Bitcoin News

Itau Unibanco, one of the largest banking conglomerates in Brazil, has been selected by the country’s central bank to develop a system with a stablecoin pegged to the value of the Brazilian real. Itau’s system was one of eight proposals selected by the Central Bank of Brazil as part of LIFT Lab, an annual initiative focused on financial innovation.

Itau Unibanco is developing digital real stablecoins

The Central Bank of Brazil is progressing in its pilot program to launch its central bank digital currency (CBDC), the digital real. The bank has selected Itau Unibanco, one of the country’s largest banks, to build a decentralized funding solution that includes the construction of a stablecoin linked to the Real.

The application will include features commonly found in liquidity pools but linking the real to other stablecoins representing fiat currencies from around the world. Although not much has been announced about the project at this time, the application could support asset pooling, alternative investments, and the management and custody of those assets using blockchain-based software.

The project presented by Itau Unibanco is one of eight projects selected by the Central Bank of Brazil as part of the Financial and Technological Innovation Laboratory (LIFT) Lab, a financial innovation program now in its fifth edition. Speaking about the aim of the program, Andre Siqueira, head of the technical department of the Central Bank of Brazil explained:

LIFT Lab is a community interaction opportunity where we showcase the value of the central bank in building innovation in the national financial system. The release of a new edition, now containing 8 projects, marks a major milestone for LIFT Lab as it completes 5 years of operation.

Other featured projects

Other projects selected for LIFT Lab 2022 include a solution for lending to vulnerable people in Brazil’s favelas, involving people from the community as facilitators of these grants, to be developed by the G10 bank; a system that would serve as a bridge to exchange digital reality with other existing blockchains using the Celo blockchain; and a solution to tokenize assets on the blockchain to decentralize credit risk.

The LIFT also presented a digital reality-focused challenge last March, selecting nine projects studied and overseen by the Central Bank of Brazil.

What do you think of the stablecoin solution to be developed by Itau Unibanco? Tell us in the comment section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price surge took place in December 2017. He has a computer engineer background, lives in Venezuela and is socially affected by the cryptocurrency boom. He offers a different take on crypto’s success and how it’s helping those who are unbanked and underserved.

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