The Central Bank of Brazil has recently announced that it will be running a pilot test for its proposed central bank digital currency (CBDC), the digital real. This news comes after Paxos announced that it would no longer mint the stablecoin BUSD, resulting in the removal of 4.98 billion BUSD stablecoins from circulation.
The digital real is expected to be a digital version of the Brazilian real, the country’s official currency. The pilot test will be used to assess the feasibility of the CBDC and its potential use cases. Roberto Campos Neto, president of the Central Bank of Brazil, stated that the institution is looking to “explore the potential of digital currencies and their implications for the Brazilian economy.”
The news of the pilot test has been met with enthusiasm from the crypto community, as it could potentially open up new opportunities for the Brazilian economy. The digital real could be used to facilitate faster and more secure payments, as well as provide access to financial services to those who are currently underserved.
The news of the pilot test also comes at a time when the BUSD stablecoin has fallen out of the top ten crypto assets by market capitalization. The Paxos-managed stablecoin has a market cap of around $11.12 billion, compared to dogecoin’s $11.24 billion.
The Central Bank of Brazil’s pilot test for the digital real could be a major step forward for the country’s economy. If successful, the CBDC could open up new opportunities for businesses and individuals alike. It remains to be seen how the pilot test will turn out, but it is certainly an exciting development for the crypto community.