Acceptance of crypto is gaining momentum in Brazil, where the country’s Central Bank has commissioned a commercial banking behemoth to develop a DeFi solution for its prototype central bank digital currency. This move comes at a time when crypto adoption is on the rise globally (CBDC). In the meantime, over the border in Argentina, a city has announced that it will accept tax payments made using stablecoins that are tied to the USD, and the nation’s major city of Buenos Aires has expressed interest in joining in on the action as well.
Ita Unibanco is one of the largest commercial financial institutions in Brazil, and the country’s Central Bank has announced in an official notice that it has selected the institution to work on the development of a number of stablecoins, including a fiat real-pegged token. This announcement was made by the Central Bank. This stablecoin will be utilized together with several other tokens that are tethered to fiat currency. These will be linked to the exchange rates of other major worldwide fiat currencies. Even though there is not much information available at this time, it seems that the Central Bank would like to investigate the potential uses of various CBDCs on digital platforms.
The initiative was referred to as a “DeFi liquidity pool” by the central bank, which also referred to it as a “platform that facilitates custody, currency exchange, and alternative investments via blockchain technology and smart contracts.”
Ita was given the task of developing a “use case” that will consist of “creating a liquidity pool, with tokens that emulate stablecoins that… are pegged 1:1…. with the real, dollar, and other fiat currencies.”
The Central Bank mentioned that there is a need to develop a solution whose “operations” would be “similar to that of liquidity DeFi solutions that are now operating in the (cryptoasset) market.”
Additionally, the Central Bank has requested that Ita, along with a number of other traditional financial and crypto-space firms, collaborate on a variety of projects relating to cryptocurrency and blockchain technology. The bank’s Laboratory of Financial and Technological Innovations conceived of the initiatives and is responsible for their development.
Using the Celo (CELO) blockchain, the Central Bank requested that one company develop “a bridge” that would allow its prototype digital real to interoperate with other blockchain networks already in existence. This task was given to the firm. A request was sent to a different company to come up with “a method for tokenizing assets on the blockchain to decentralize credit risks.”
In the meantime, Ambito and Infobae both claimed that the city of Mendoza in Argentina has started taking tax payments in a variety of stablecoins. This news was first published by Ambito.
The city, which is well-known as a center for the production of wine, made the announcement that it has “integrated new technology” into its “payment processing platform,” which “now enables taxpayers to pay their taxes using cryptocurrency.”
However, stablecoins are not included in the definition of cryptocurrencies, and it would appear that the city is not quite prepared to take the bitcoin (BTC) plunge just yet. As a result, the city will only accept payments made in DAI, tether (USDT), USD coin (USDC), and other major USD-pegged coins.
It would appear that the city has beaten off the nation’s capital, Buenos Aires, to the punch with its new adoption policy; the media sites explained that a similar project in the nation’s capital is getting very close to being finished.
The authorities of the city have been reported as saying that they “are putting in effort to ensure that this occurs as quickly as feasible. The only thing left to do is wait for (local crypto) exchanges to assist us in putting this measure into effect.”
The following is a quote attributed to Diego Fernández, Secretary of Innovation and Digital Transformation for the city of Buenos Aires:
“To talk about cryptocurrency is to talk about freedom, opportunity, and innovation all at the same time. Through the use of technology, new payment methods and ways to save money have evolved. We want it to be possible for people to pay [their taxes] using the same methods that they are already familiar with.
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