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Itau Unibanco, a Brazilian bank, plans to create a real-pegged stablecoin

Itau Unibanco, a Brazilian bank, plans to create a real-pegged stablecoin.

The Brazilian banking behemoth Itau Unibanco plans to launch a new project that would involve the establishment of a stablecoin pegged to the Real, the country’s official currency. As part of the LIFT (Laboratory of Financial and Technological Innovations) Lab initiative, the bank’s proposal was chosen by the Central Bank of Brazil.

To Develop a Real-pegged Currency Itau Unibanco Stablecoin

An ongoing initiative, LIFT Lab works to improve the economy through strengthening the country’s financial system. The current developments have brought the central bank very close to adopting CBDC.

The Brazilian Real (CBDC) virtual currency pilot project is moving forward, thanks to the efforts of the Brazilian Central Bank. The bank has selected Itau Unibanco, one of the largest banks in the country, to announce the new venture.

The bank is tasked with developing a DeFi solution, which includes the production of a stablecoin pegged to the national currency. This would be the go-to method for agencies’ liquidity pool needs.

The national currency would be connected to other stablecoins based on fiat money around the world. In addition, blockchain-based applications could be used to facilitate alternative investments, asset pools, custody, and asset management.

Additionally, the central bank chose this initiative along with seven others for the 5th edition of the LIFT Lab program. The program is meant to encourage creative financial practices across the country.

Various Other LIFT Lab Projects

When asked about the project, Andre Siqueira, head of the technology department at the central bank, said:

The Central Bank’s role in propelling innovation inside the country’s financial system is crucial, and with LIFT Lab we can reach the masses and have this conversation. As LIFT Lab enters its sixth year of operation, the most recent edition, which encompasses eight projects, is a major milestone.

The central bank’s LIFT Lab program also includes a credit grant solution and other efforts. Poor people in favelas will benefit from this credit giveaway.

The solution, meantime, must make locals the grant’s primary point-of-contact. The creation of this credit grant facility is the responsibility of the G10 bank.

This credit award also facilitates trading in digital Real on other platforms based on the Celo blockchain. For the purpose of spreading credit risk, it might also be utilized for tokenizing assets.

In March of last year, the LIFT project also hosted a virtual reality competition. Brazil’s central bank has selected nine concepts from the competition to further investigate and develop.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.