{"id":2186,"date":"2023-04-29T22:09:58","date_gmt":"2023-04-30T02:09:58","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/visa-to-develop-brazilian-blockchain-powered-cbdc-project\/"},"modified":"2023-04-29T22:09:59","modified_gmt":"2023-04-30T02:09:59","slug":"visa-to-develop-brazilian-blockchain-powered-cbdc-project","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=2186","title":{"rendered":"Visa to Develop Brazilian Blockchain-powered CBDC Project"},"content":{"rendered":"
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The payments giant Visa has unveiled a new blockchain and central bank digital currency (CBDC) project in Brazil.<\/p>\n

Per the Brazilian media outlet Livecoins, the firm was selected by the Brazilian central bank to \u201cexplore\u201d blockchain technology-powered \u201cusage cases\u201d for the prototype digital real.<\/p>\n

The bank is hopeful of debuting its coin later this year.<\/p>\n

It has also claimed that the coins will be designed with a view to helping local businesses.<\/p>\n

Visa\u2019s offering was created in partnership with Agrotoken, Microsoft, and Sinqia.<\/p>\n

The firm\u2019s solution is a financial platform designed for small and medium-sized enterprises (SMEs).<\/p>\n

Visa said the solution would be of particular interest to small-scale farmers and agricultural firms.<\/p>\n

The platform comprises an interoperability solution, a Visa innovation called Universal Payment Channel (UPC).<\/p>\n

Using UPC, the firm claims, traders and companies \u201ccan make a connection between\u201d the Brazilian CBDC and \u201cother CBDCs, stablecoins, or tokenized deposits.\u201d<\/p>\n

This, the four firms claimed, will allow agricultural industry players to use the digital real \u201cin different markets and networks.\u201d<\/p>\n

And the firms said that the platform would help \u201cexpand the financing options available for SMEs to fund their business securely and frictionlessly.\u201d<\/p>\n

It will also \u201creduce the inconvenience caused by a lack of access to traditional services,\u201d they said.<\/p>\n

Visa\u2019s Blockchain-powered CBDC Project \u2013 Will It Take off in Brazil?<\/h2>\n

Catherine Gu, the Global Head of CBDC at Visa, gave the example of \u201cenabling a [Brazilian] soybean producer to create and auction \u2013 globally \u2013 a contract that has been tokenized on an authorized version of the Ethereum blockchain, using different interoperable forms of money.\u201d<\/p>\n

The platform, its developers claim, brings existing financial processes and assets onto the blockchain protocol.<\/p>\n

This move, they say, will \u201callow farmers to tokenize traditional contracts.\u201d<\/p>\n

To do this, Visa said that it had made use of the \u201cagricultural commodity tokenization expertise\u201d of Agrotoken.<\/p>\n

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Visa claimed that doing so allowed it to transform existing Brazilian legal documents into \u201con-chain, tradable non-fungible tokens (NFTs).\u201d<\/p>\n

The payments firm added that it had developed an on-chain \u201csealed-bid auction solution.\u201d<\/p>\n

This solution uses smart contract technology, Visa said.<\/p>\n

This, Visa claimed, will allow a pool of global blockchain investors to \u201cparticipate in the funding process\u201d for SME financing.<\/p>\n<\/p><\/div>\n