The Brazil Stock Exchange (B3), is looking into ways to offer data inputs for the country’s central bank digital currency (CBDC).
The stock exchange is considering supplying oracles to bridge external data with Brazil’s expected CBDC, the digital real, according to Luis Kondic, managing director of listed products and data at B3. On September 30, the executive spoke in a CBDC-related online event held by the Central Bank of Brazil.
“We’re taking a look at it and figuring out the best methods to communicate with and participate in this ecosystem. However, I believe that this is something that we should evolve and move forward with in order to fulfil the future needs of this programmable cash payments system,” Kondic added.
Oracles are an important aspect of smart contracts because they provide data feeds from external sources, allowing smart contracts to be executed under certain conditions.
Smart contracts, according to Kondic, have the potential to provide various benefits for the Brazilian CBDC, including automatic profit allocation based on B3’s oracle inputs.
“For example, you can arrange money to be dispersed among shareholders automatically based on the company’s profitability; schedule money for automatic settlement of issuance and payment of receivables; or pay suppliers automatically within a distribution chain,” the executive stated.
Other banks, such as the Reserve Bank of New Zealand, have also proposed smart contract applications for CBDCs, such as automatic rent or bill payment execution.
The announcement comes as the Brazilian central bank continues to work on the CBDC after established a dedicated squad to research the crypto business in October.
As part of its CBDC inquiry, the Brazilian central bank gave a presentation on Sept. 9 noting that it is looking into potential smart contracts and decentralized finance applications. After presenting a proof of concept in 2022, the regulator plans to launch the first digital real pilots in 2023.
