BRICS member Brazil is all set to test the second phase of its Central Bank Digital Currency (CBDC) this week. The Central Bank of Brazil confirmed that several features will be incorporated into the CBDC including government bonds. The proposed CBDC will boast of various functionalities boxed into one mechanism making it easier to function.
Also Read: Donald Trump Warns of Consequences If BRICS Ditches the US Dollar
Brazil has confirmed that the second phase of CBDC testing will include 13 new functionalities into the system. BRICS country Brazil will include functionalities in the CBDC digital currency such as:
- Assigning credits with collateralization
- Establishing liquidity pools for trading government bonds
- Financing international trade operations
- Automatizing of car transactions
- Real estate platform integration, among others.
Also Read: BRICS: China Exporters Stockpile $500 Billion, Chinese Yuan Could Rise
BRICS: Brazil’s CBDC Digital Currency Second Phase Testing To Begin
A handful of state-run banks among other corporations will closely work on the CBDC digital currency second phase pilot project. Brazil’s stock exchange B3, Banco do Brazil, Banco Inter, Nubank, and the Brazilian Association of Banks are part of the project. Also, the development indicates that BRICS member Brazil is advancing in its quest to launch the CBDC digital currency. “Each of the use cases will be tested by everyone. Collaboration will always be welcome,” said Bruno Grossi, Manager of Emerging Technologies at Banco Inter.
Also Read: BRICS: Russia’s Economy Grows Despite US Sanctions & Declining Imports
In addition, almost all BRICS nations are now working towards establishing a new CBDC digital currency for transactions. The move will help them create new rules for cross-border transactions and break free from the clutches of the US dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
Also Read: BRICS: Chinese Banks Rejecting 80% of Payments Made in Russian Ruble
Moreover, the expected date for BRICS member Brazil’s second phase of CBDC digital currency testing could be completed in 2025. Additionally, the Central Bank of Brazil is working towards the protecting privacy of bank account holders. “Necessary maturity to guarantee compliance with all requirements and legal issues related to the preservation of citizens’ privacy,” read the report.