The Itaú bank was chosen by the Central Bank of Brazil to create a DeFi solution with stablecoins, which must have parity with the Brazilian Real. This is another novelty by the municipality to advance in the competitive sector of cryptocurrencies.
In addition, it shows that both the Brazilian central bank and the largest banks in Latin America are still attuned to what happens in the cryptocurrency market .
This is because terms such as DeFi and stablecoins emerged with cryptocurrencies through public networks such as Ethereum, for example.
Even so, these financial innovations threaten the survival of banks, which are already adapting to survive in the long term.
Itaú will create DeFi with stablecoins in a BCB program
Itaú has already became into cryptocurrencies a few months ago, when he announced his interest in launching a bitcoin exchange soon.
By creating a digital assets division, the bank recently launched its tokenization program, which is expected to use blockchains to launch tokens to their customers.
Last Friday (26), the Central Bank of Brazil asil presented the 8 selected projects in the fifth edition of LIFT Lab 2022. This initiative is coordinated by the BC in partnership with the National Federation of Central Bank Server Associations (Fenasbac).
For the head of division in the Information Technology Department of the Central Bank, André Siqueira, this is a program that provides opportunities for innovation.
“LIFT LAB is an opportunity for interaction with society in which we present the value of BC in building innovation in the SFN. The release of a new edition, now covering 8 projects, represents an important milestone for LIFT LAB, which completes 5 years of operation.”
And one of the products chosen is the DeFi system – Liquidity Pool to be built by Itaú, which will create a liquidity pool with tokens that emulate stablecoins paired with Real, Dollar and other fiat currencies.
Its operation must be similar to DeFis with cryptocurrencies, also allowing custody, exchange of currencies and alternative investments through blockchain and smart contracts.
Other solutions chosen that will have blockchain highlighted
In addition to the Itaú solution, three other solutions will use blockchain to create innovations for the Central Bank of Brazil, that is, half of the proposals chosen by LIFT 2022.
One of them is Easy Hash – Decentralized Microcredit, to be created by developer Celso Jungbluth. The solution provides for a tokenization of financial assets on blockchain for the decentralization of credit risk between creditors.
Another solution provides for an integration of the digital Real with a public Blockchain, to be developed by Lovecrypto LTDA. With this, it may be possible to convert a stablecoin on the Celo blockchain into a digital Real, making the Brazilian currency integrated with a public blockchain that runs on the EVM and even with the PIX.
Using smart contracts and stablecoins, Nest must create an application with business rules so that CCBs (Cédula de Crédito Bancário) are integrated with stablecoins or CBDCs, from transfers from Pix or TED.
O start of projects starts in 12 September 2022, with final delivery date in January