Itau Unibanco Selected by Brazil Central Bank to Develop DeFi Project

UTC by Sanaa Sharma · 3 min read
Itau Unibanco Selected by Brazil Central Bank to Develop DeFi Project
Photo: Depositphotos

The new scheme will comprise features generally available in liquidity pools but at the same time, will relate real with the other stablecoins, designating fiat tokens from around the globe.

Itau Unibanco, the largest private banking conglomerate in Brazil, has been chosen by Brazil’s central bank to design a scheme that associates stablecoin with the weight of the Brazilian real. Itau’s proposal was one of the eight submissions chosen by the Central Bank of Brazil as part of the LIFT Lab, a yearly undertaking targetting monetary invention.

Brazil’s central bank received proposals for eight brand-new assignments through its innovation lab, which also included a DeFi liquidity pool from Itau Unibanco, one of the country’s most popular banks. The suggested projects are all set to be a medium that utilizes blockchain and smart contracts, and enable custody, currency exchange, and other investments. The plan is to formulate a liquidity pool, with assets that mimic stablecoins and can potentially be equal to the Brazilian real, dollar, or any other fiat currency. The undertakings, with its procedures, will be akin to that of liquidity DeFis that function in the virtual asset marketplace.

The various types of proposals also comprised a number of alternate blockchain-associated projects. Another FinTech firm called Lovecrypto also suggested transforming a stablecoin on the Celo Blockchain into what could in the future be called Brazil’s Central Bank Digital Currency (CBDC), or the Real Digital.

The new scheme will comprise features generally available in liquidity pools but at the same time, will relate real with the other stablecoins, designating fiat tokens from around the globe. Even though there has not been a lot of information given to the public yet, one can guess that the proposal could back token pooling, other investment methods, etc.

According to the head of the tech department at the Central Bank of Brazil, the Laboratory of Financial and Technological Innovations (LIFT) Lab is a way for communication and information dissemination with society in which the firm delivers the Central Bank’s value in designing innovation in the federal framework.

Itau is the largest bank in Brazil with a current hold on $371 billion in total assets. The Central Bank also chose an alternative Itau assignment to target near-field communication (NFC) and QR code technology to additionally develop PIX, the nation’s instant payment method. This concludes the 5th series of projects the LIFT Lab has picked since its establishment in 2018. Recently in March, LIFT externally selected 9 projects to design and work on, which sought to curate a Brazilian CBDC.

Seven other undertakings were disclosed by Banco Central do Brasil, among them is Easy Hash, which works to tokenize monetary assets on the blockchain.

Blockchain News, Cryptocurrency news, FinTech News, News
Sanaa Sharma
Author Sanaa Sharma

Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.

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