One of the biggest global banking organizations, Santander, has put out a suggestion to improve the Brazilian use case for the planned central bank digital currency (CDBC), the digital real. Santander is employing Parfin-developed technology to tokenize the ownership interests in the assets involved in a transaction and to control how the money, in this example, the digital real, is exchanged for the assets.
The project’s goal is to make using the platform to transact with various types of property as simple as possible. Santander’s Executive Superintendent of Open Finance, Jayme Chataque, commented on this as follows:
“The idea is that, through tokenization, Brazilians can safely negotiate the sale of vehicles or real estate through smart contracts, on permissioned blockchain networks.”
The concept is a component of the LIFT challenge, a collection of initiatives chosen by the Central Bank of Brazil to identify appropriate applications for the digital real and scheduled to debut in 2024.
Santander, Not The Only One
Santander is one of eight initiatives chosen with the goal of determining whether it is feasible to launch multiple ideas using the digital real as a platform in addition to Santander.
This year, other organizations, including well-known exchange Mercado Bitcoin, are putting out comparable options. With a plan to deploy a decentralized finance protocol to offer to fund small and medium-sized businesses using the digital real, Visa do Brazil is also taking part.
There is also a plan that would use the aforementioned CBDC to introduce offline payments, enabling buyers and sellers to conduct business without the need of the internet.
Santander has also expressed an interest in adding cryptocurrency services to its range of offerings. The business declared in June that it would allow consumers to trade cryptocurrencies in Brazil in the upcoming months. Santander announced in March that it would launch a trial program in Argentina to offer loans backed by these agricultural tokens in collaboration with Agrotoken, a firm that tokenizes agricultural commodities.