Santander presented plans for the use of the digital real, the Brazilian CBDC, in the sale of vehicles and homes.
Banco Santander wants to do a Brazilian CBDC project: the digital real
Specifically, it proposes use cases for this CBDC
Digitizing the buying and selling of cars and houses is the focus of the new project in Brazil
Santander bank, a huge and recognized financial institution in the world, with its initial headquarters in Spain, but with great dominance in the Latin American market, has presented a new project in Brazil related to the central bank digital currency plan, CBDC, the real digital, which is being worked on by the country's central bank and is expected to be launched in 2024.
Specifically, the Santander bank proposes use cases for the digital real, specifically to digitize transactions for the purchase and sale of vehicles and properties in Brazil.
The Santander bank had already announced in July its intentions to launch services with cryptocurrencies in Brazil, but at that time it had not specified its interest in working with the central bank's digital currency.
Tokenization and Blockchain
Santander Brazil presented to the Central Bank the solution that the institution is developing to increase comfort in real estate and car transactions carried out directly between buyer and seller
The initiative provides for the tokenization (conversion to digital format) of the property rights of goods such as a car, and is part of the LIFT challenge, a collaborative laboratory created by the regulatory entity to stimulate projects linked to the digital real. Santander is not the only institution that is part of LIFT, as eight other projects have been selected that will prove the viability of the CBDC.
The solution proposed by Santander uses two Blockchain and tokenization technologies, including that of the fintech Parfin, and will be able to synchronize the transfer of the Real Digital to the seller at the time the buyer takes possession of the asset.
The project's technical leadership was provided by F1RST, Santander's technology and innovation company.
According to the Brazilian media Livecoins, Jayme Chataque, executive superintendent of Santander's Open Finance, the idea is to use Blockchain technology to provide guarantees in car and home transactions. He highlighted:
The idea is that, through tokenization, Brazilians can safely negotiate the sale of vehicles or real estate through smart contracts, on authorized Blockchain networks.
That is, the marketed good gains a digital representation, through a token, whose ownership is transferred through a payment using real digital.
According to Alex Buelau, CTO of Parfin, the company has developed an authorized Blockchain network for the project that performs the tokenization of assets.
Called ParChain, the network will carry out the process of digitizing asset ownership and transfer operations in exchange for digital currency (Delivery versus Payment, or DvP).
source: Livecoins
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