Brazil Central Bank CBDC Pilot Snubs Crypto Firms

Brazil CBDC
Last updated:
Author
Author
Tim Alper
About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
The Central Bank of Brazil building in Brasilia, Brazil.
Source: Donatas Dabravolskas/Adobe

The Central Bank of Brazil has effectively blocked crypto firms from taking part in its central bank digital currency (CBDC) pilot.

The bank this month issued a call for interested firms to join the next phase of its pilot.

But while the bank did not explicitly rule out the participation of crypto companies, the media outlet Livecoins explained that the call was a de facto snub for crypto players.

The bank requires all would-be participants to be registered and regulated finance or fintech providers.

But as crypto firms are not currently regulated under Brazilian law, this effectively means companies in this sector cannot even apply to join the pilot.

The media outlet wrote:

“Cryptocurrency platforms […] [will] be left out of the digital real pilot. In practice, the pilot is restricted to banks and a few other regulated institutions. The situation is almost a ‘friends of the king’ scenario.”

What is the Brazilian Central Bank’s CBDC Plan?

The bank hopes to debut its coin later this year.

It has also claimed that its token is being designed to help foster domestic businesses and startups.

In its notice, the bank explained that it wants to work with firms that have a deep knowledge of the Ethereum Virtual Machine (EVM).

The EVM is a computation engine for the Ethereum blockchain network.

It manages the state of the blockchain protocol and realizes smart contracts.

The bank also wants to work with firms that have experience with distributed ledger technology (DLT).

Many crypto firms have experience in both of these sectors – the bank added that companies would be granted the opportunity to test “transactions involving the issuance, redemption, or transfer of financial assets”. 

The bank explained that it would select ten firms to work with it on the pilot, and that the closing date for applications will be May 12.

More Articles

Blockchain News
BitGo Launches Global OTC Trading Desk, CEO Says Crypto Firms Should Go Public
Sead Fadilpašić
Sead Fadilpašić
2025-02-19 11:24:18
Altcoin News
Dave Portnoy Profits $258K from Solana Meme Coin GREED Before Token Collapses: Lookonchain
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-19 11:19:58
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors