Major Brazilian cryptocurrency exchanges have united to develop a stablecoin tied to the Brazilian real. Bitso, Foxbit, Mercado Bitcoin, and Cainvest announced their partnership on October 7, aiming to launch BRL1 on various blockchain networks this year. The consortium expects circulation of R$100 million within a year and plans to collaborate with projects like Drex, Brazil’s digital real initiative.
Despite being competitors, the exchanges emphasize the importance of cooperation to strengthen Brazil’s digital asset market. Fabrício Tota from Mercado Bitcoin and Charles Aboulafia from Cainvest expressed dedication to the project, with Cainvest providing liquidity for BRL1 pairs on the exchanges.
BRL1 Stablecoin
The CEO of Foxbit, Ricardo Dantas, sees BRL1 as a crucial advancement, bridging the gap between crypto and traditional finance. Backed by Brazilian reais and government bonds, this stablecoin aims to enhance transaction efficiency and security on networks like Ethereum and Polygon.
Bitso’s country manager in Brazil, Bárbara Espir, highlighted BRL1’s potential for cost-effective and transparent transactions, supported by Fireblocks for tokenization and custody technology. Legal guidance from Pinheiro Neto Advogados ensures regulatory compliance for this innovative project.