Visa and Santander Selected by Brazil’s Central Bank for a Second Phase of CBDC Pilot

• The Brazilian central bank will oversee 11 projects while the local Securities and Exchange Commission will supervise two.

• Visa was selected to optimize the foreign exchange market, while Santander plans to work on a project involving automobile operations.

Brazil’s central bank (BCB) selected on Wednesday 13 participants for the second part of the pilot of its central bank digital currency (CBDC), called Real Digital.

The BCB and Brazil’s Securities and Exchange Commission (CVM) received 42 proposals for this second phase of the pilot, called Drex, the bank said in a statement. The BCB will oversee 11 projects, while the CVM will supervise two.

“In the second phase of testing, the infrastructure created for the pilot will test the implementation of financial services, available through smart contracts created and managed by third parties participating in the platform,” the BCB added.

The list of selected projects includes global companies such as Visa, which will work alongside the Brazilian brokerage XP and digital bank Nubank to optimize the foreign exchange market. Spanish banking giant Santander, for its part, was selected to work on a project involving automobile operations and another focused on lending and decarbonization.

The second part of the pilot will include other important local financial entities such as Bradesco, Itaú Unibanco, and the local stock exchange B3.

The BCB added that in the third quarter of 2024 it will open a new call for firms interested in participating in the Drex pilot, which should “test the implementation of smart contracts by the end of the first half of 2025.”

In May 2023, the BCB selected 14 participants for the first phase of the Real Digital.