The Brazilian stock exchange (B3), one of the few exchanges in the world that trades exchange-traded funds Bitcoin (BTC), is investigating ways to provide input to the country’s central bank digital currency, or CBDC.
Luis Condec, CEO of B3-listed products and data, said that the exchange is considering a proposal from Oracle to link offshore data to the expected Brazilian CBDC in true digital format. Cointelegraph Brasil said that the CEO made his comments at an online CBC currency event hosted by the Brazilian central bank on Thursday.
“We look at this and evaluate the best ways to interact and participate in this ecosystem. However, I believe that we must develop and move forward to meet the needs of the programmable cash payment system, says Kondyk.
Oracles are an important part of smart contracts, and provide data streams from external sources to implement smart contacts under certain conditions. According to Kondyk, smart contracts are likely to bring many benefits to the Brazilian central bank, including the implementation of automatic dividend distribution based on Oracle input in B3.
“There are many applications, for example, you can schedule an automatic distribution of funds to shareholders according to the company’s earnings; to plan funds for automatic settlement of issues and payment of receivables or payments to suppliers automatically in the distribution chain, ”the manager explained.
Other banks, such as the Reserve Bank of New Zealand, have also identified potential smart contract applications for central bank digital currencies, including automatic rents or bill payments.
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The news comes among advances made by the Brazilian central bank in the development of the CBDC since the establishment of the research group for the cryptocurrency industry in October 2020. On September 9, the Brazilian central bank sent a presentation that the body is investigating reasonable alternatives. Contracts and decentralized financial applications as part of the CBDC survey.
The regulator expects to launch the first true digital pilots in 2023 after delivering a concept certificate in 2022.