Brazil Stock Exchange Considers Oracles for its CBDC
Brazil stock exchange, B3, revealed that it is looking into the various ways it can provide real-life data for the country’s e-currency. In an online event hosted by the central bank, the Managing Director of Listed Data, Luis Kondic, stated that the stock exchange was exploring the best ways to interact in the space, and is considering using oracles for the data inputs. The news comes after the central bank’s presentation on September 9 that it was still studying the various smart contracts for its CBDC.
Smart Contracts Can Benefit Brazil’s CBDC
Kondic emphasized the need to come up with the best solution for its CBDC. He stated that the country must do that to move forward to the future of programmable cash payment systems.
Oracles help execute smart contracts by providing data feeds from external sources. Kondic outlined the potential benefits of oracles to the country’s CBDC, stating that they can help execute automatic profit distribution based on its inputs. The executive explained that smart contracts can help users and institutions distribute money automatically to shareholders based on the company’s profits, automatically settle issuance, and pay for goods/services received within the chain.
Yesterday, the Reserve Bank of New Zealand also pointed out the same significant benefits of blockchain-based CBDC in a document, while also discussing its designs, purposes, and potential risks. According to the central bank, the general-purpose CBDC would share the same function as the banknotes. Although physical cash circulation has increased, it’s still used less for transactions.
Brazil was one of the first few countries to indicate an interest in developing its CBDC program. In October 2020, the country created a dedicated group to examine the possibilities of having it. In early September, the country revealed it was studying potential smart contracts and DeFi apps as part of its investigation.
B3, one of the few exchanges around the globe that trades BTC ETFs, then recently revealed that it aims to provide oracles smart contacts for its digital real. Regulators anticipate the roll out of the digital real in 2023.
CBDC Will Reduce Remittance Costs By 50%
International Remittances, especially across borders, are expensive and not that efficient. CBDCs, according to Bank for International Settlements reduce these costs and time taken to complete transaction from days to only a few seconds.
Several countries, such as Australia, Nigeria, Malaysia, Singapore, China, Nigeria, and India are exploring the CBDC program, with the first three countries collaborating to ensure maximum effectiveness.
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