📣 Brazil Brings Chainlink Onboard for CBDC Work
posted 19 Nov 2024
Banco Inter, Microsoft, 7COMm, and Chainlink have joined the second stage of Brazil’s DREX digital currency pilot, initiated by the Central Bank of Brazil. The first phase, launched in May 2023, tested the platform’s capabilities.
The selected companies will focus on enhancing trade finance by simplifying and automating settlements for international trade participants. Their efforts will also extend to automating supply chains and facilitating trade using blockchain and oracle technology.
Operation of Brazil’s Digital Currency Pilot Project. Source: medium.com
This stage will involve testing automated cross-border settlements for agricultural products. The aim is to cover multiple platforms and currencies. Chainlink's role is to implement the CCIP protocol, linking DREX to a foreign central bank’s system to guarantee secure interoperability and seamless transaction execution.
The pilot will also feature the tokenization of an electronic bill of lading (eBoL). Supply chain data will be employed at different stages of the delivery process to automate payments to exporters. This initiative is intended to showcase how Delivery versus Payment (DvP) and Payment versus Payment (PvP) mechanisms can boost transparency and security in global supply chains.
Banco Inter is set to lead the local implementation of the DREX platform. Bruno Grossi, the bank’s head of new technologies, highlighted the project as a key opportunity to strengthen the Brazilian market through partnerships with tech leaders.
Chainlink’s CCIP protocol will underpin the infrastructure for DREX and other CBDC projects, simplifying cross-blockchain token transfers and integrating with traditional backend systems.
Microsoft will deliver cloud services to support the DREX platform. The company remarked that the project aims to enhance access to intelligent financial services and spur economic growth in Brazil.
7COMm will handle the technical implementation of the project. The company is optimistic that partnership-driven efforts will bolster Brazil’s economy and demonstrate the practical business value of CBDCs and blockchain.
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