Estimated reading time: 1 minute
The Central Bank of Brazil (BCB) is developing a blockchain-powered trade finance solution for the second phase of its central bank digital currency (CBDC) project, DREX.
Technology platform Chainlink, Microsoft Brazil, the Brazilian digital bank Banco Inter, and IT services company 7COMm are developing it.
The pilot programme aims to demonstrate cross-border agricultural commodity transactions using tokenised currencies across multiple platforms. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will enable transaction compatibility between Brazil’s central bank and a foreign counterpart.
Key elements include tokenising an electronic bill of lading (eBL) and using supply chain data to automate exporter payments, to make international trade transactions more efficient, secure, and transparent.
“We see this as a transformative opportunity to expand market reach,” said Bruno Grossi, Head of Emerging Technologies at Banco Inter. Microsoft will provide cloud infrastructure, while 7COMm will support technical implementation.
Chainlink has previously collaborated with institutions including Swift and ANZ (Australia and New Zealand Banking Group) on similar blockchain interoperability initiatives, underlining the growing institutional interest in blockchain solutions.
The pilot is expected to commence in the coming weeks. Brazil’s exploration of distributed ledger technology (DLT) for financial services could revolutionise trade finance mechanisms in the region, and define the global developments.
