The Central Bank of Brazil picked proposals for eight new projects to ramp up through its innovation lab, including DeFi liquidity pool from Itaú Unibanco, the country’s largest bank. The Central Bank chose these projects as part of financial and technological innovation.
The Central Bank stated that the proposed project will be a platform that leverages blockchain and smart contracts to offer custody, alternative investments, and currency exchange. It also mentioned the use case that includes creating a liquidity pool.
The liquidity pool would be created using tokens that emulate stablecoins that have parity with the Brazilian real, dollar, or some other fiat currency. Moreover, its operations would be similar to that of liquidity DeFis which operates in the digital asset market.
The list of proposals also includes several other blockchain-focused projects. Among them is one proposal from Lovecrypto that involves converting a stablecoin on the Celo blockchain into what would be Brazil’s Central Bank Digital Currency (CBDC), the Real Digital.
Another project from Delened Tecnologia would form a decentralized credit protocol aimed at small and medium-scale businesses. Additionally, it includes a separate proposal from Celso Jungbluth that focuses on decentralized microcredit.
Itaú is the largest Brazilian bank with over $371 billion in total assets, as per S&P Global reports. The Central Bank also chose another Itaú project focusing on near-field communication (NFC) and QR technology to further innovate PIX, the country’s instant payment system.
Earlier this year, the Central Bank of Brazil also selected 9 projects to move forward with CBDC plans. There were 47 proposals from 43 different companies, out of which 9 were picked to proceed further.
The recently chosen eight projects will advance in the latest edition of its Laboratory of Financial Innovations and Technologies (LIFT). The move marks the fifth round of projects the LIFT lab has selected since its launch in 2018.
