Cryptocurrency platform Mercado Bitcoin and the Stellar Development Foundation are partnering on Brazil’s central bank digital currency (MNBC) project.
Mercado Bitcoin partners with Stellar Development Foundation
Mercado Bitcoin, South America’s largest cryptocurrency platform, unveils a partnership with the Stellar Development Foundation, which develops the blockchain of the same name.
The agreement is part of the development of a minimum viable product for the LIFT Challenge Real Digital. This is an experiment, which competes with the best proposals for the creation of Brazil’s central bank digital currency (MNBC).
Is there a CBDC in Brazil’s future?
SDF has partnered with @MercadoBitcoin to develop one of the nine projects selected for the LIFT Challenge held by @InovacaoFenas and @BancoCentralBR Together, we’re exploring a CBDC for the Central Bank of Brazil https://t.co/DvLjL2RVsn
– Stellar (@StellarOrg) May 24, 2022
The Stellar Development Foundation joins CPQD and ClearSale in the Mercado Bitcoin digital real (BRL) project. Both are Brazilian companies, the former specialising in telecommunications and the latter in the fight against fraud.
Reinaldo Rabelo, Mercado Bitcoin’s CEO, was confident about the quality of the value proposition he plans to present to the Brazilian Central Bank:
“We are going to do this in a very short time.
“We are part of a consortium of companies, which have the structure and ambition to create robust solutions for the financial market through blockchain technology. The use of the Stellar network will allow us to provide a complete package for the Central Bank’s evaluation. “
The MNBC versus Bitcoin (BTC)
More and more countries are giving birth to MNBC initiatives, although China is the most advanced on the subject with its digital yuan. At the same time, we see another ideology emerging, that Bitcoin already has the predisposition for this role.
This was first the case in El Salvador and more recently now in the Central African Republic. Last week, Nayib Bukele, the president of El Salvador, invited representatives from 44 countries to discuss the role of Bitcoin in the global economy.
On the opposite side of the spectrum, Christine Lagarde has been making a name for herself in recent days, arguing that cryptocurrencies are worthless. Her position effectively requires her to defend a digital euro, which will not be operational for several years.
As for Brazil’s MNBC, Mercado Bitcoin is not the only one competing. A total of nine projects are competing for the Lift Challenge, including the participation of Aave (AAVE), but also an agreement between Visa, Microsoft and ConsenSys.
Regardless of which proposal is selected, we note that this initiative is much more advanced in its development than on our continent, and includes players who are well aware of the fundamentals of our ecosystem
