Itau Unibanco, a banking conglomerate in Brazil, will be working on a new project that features the creation of a stablecoin anchored to the country’s national currency, the Real. The Central Bank of Brazil selected the bank’s proposal during the LIFT (Laboratory of Financial and Technological Innovations) Lab program.
Itau Unibanco To Create A Real-pegged Stablecoin
The LIFT Lab program is an annual project that is focused on developing the country’s financial sector. The latest news takes the central bank close to CBDC adoption.
The Central Bank of Brazil is making progress with its pilot project for the introduction of the virtual Real, the country’s CBDC. The bank has chosen one of the largest banks in the nation, Itau Unibanco, to herald the project.
The bank is to develop a DeFi solution that also includes the creation of a stablecoin anchored to the national currency. Agencies would use this solution for most functions in liquidity pools.
However, it would link the national currency with other fiat-based stablecoins worldwide. It might also support alternative investments, asset pooling, custody, and management of assets through blockchain-based software.
Furthermore, this project is one of eight other projects the central bank selected as part of the LIFT Lab program, which is in the 5th edition. The program aims to boost financial innovation in the country.
Other Initiatives In The LIFT Lab Program
Meanwhile, Andre Siqueira, leader of the central bank’s tech department, while talking about the project, said:
“Using LIFT Lab, we have the chance to connect with the masses and discuss the importance of the Central Bank in driving innovation inside the country’s financial system. The recent edition which covers eight initiatives is a great achievement for LIFT Lab as it marks its 5th year of operation.”
Other initiatives that are part of the central bank’s LIFT Lab program include a credit grant solution. This credit grant is for the less privileged living in favelas.
Meanwhile, the solution must ensure that people in the community are made the facilitators of the grant. The G10 bank is in charge of developing this credit grant facility.
Additionally, this credit grant will act as a gateway to trade the digital Real on other blockchain platforms utilizing the Celo blockchain. It would also be used for asset tokenization to diversify credit risks.
Last March, the LIFT initiative also featured a virtual real-focused challenge. After the challenge, the Brazilian central bank picked nine projects that it would study and develop.
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