- The BRL1 stablecoin aims to enhance Brazil’s digital transactions with blockchain technology.
- Major exchanges unite to launch BRL1, projecting R$100 million in circulation by 2025.
- BRL1 will bridge traditional finance and crypto, boosting transaction efficiency and transparency.
Major Brazilian crypto exchanges have formed a consortium to launch a new stablecoin pegged to the Brazilian real. Bitso, Mercado Bitcoin, Foxbit, and Cainvest are working together to create BRL1, which will be backed by reais and government bonds.
They plan to launch BRL1 by the end of 2024. The goal is to make transactions easier, both in Brazil and internationally, while also making the Brazilian crypto market more efficient and transparent.
Collaboration Among Competitors
This consortium shows how competitors are working together in the Brazilian crypto space. While these exchanges usually operate independently, they know it’s important to work together to improve the national crypto ecosystem.
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The consortium expects BRL1 to reach a circulation of R$100 million (approximately $18 million) within its first year. This ambitious goal shows their dedication to developing a stable and reliable digital currency.
BRL1’s Infrastructure and Backing
BRL1 will be issued on the Ethereum and Polygon blockchain networks. It will be fully backed by Brazilian reais and government bonds, which will make it more secure and stable. They will start by issuing R$10 million to give the project a strong foundation. Also, Fireblocks will handle tokenization and custody services for the group, strengthening the project’s infrastructure.
The creation of BRL1 aligns with Brazil’s work to improve its digital financial system. The group plans to work with other initiatives, such as Drex, Brazil’s digital real project. These efforts will help the national crypto market grow.
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Fabrício Tota, Director of New Business at Mercado Bitcoin, said that it was very important to improve Brazil’s digital asset market. He sees this collaboration as a vital step forward. Additionally, Charles Aboulafia, CEO of Cainvest, talked about his firm’s commitment to creating a strong infrastructure for the market. Cainvest is important because it provides liquidity for Bitcoin and Ethereum pairs listed against BRL1.
Ricardo Dantas, CEO of Foxbit, said BRL1 is needed in today’s financial climate. The stablecoin aims to connect traditional finance and the crypto world. Also, Bárbara Espir, Bitso’s country manager in Brazil, said that BRL1 could reduce transaction costs and make transactions faster.
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