Foxbit, Bitso, and Mercado Bitcoin, Brazil’s leading cryptocurrency exchanges, launched BRL1, the first Brazilian Real stablecoin.
On October 8, Mercado Bitcoin, Foxbit, and Bitso will introduce a stablecoin tethered to the Brazilian Real, called BRL1, according to Brazilian media site Valor.
Ethereum and Polygon will host the Brazil stablecoin, which is scheduled for release later this year. Digital bank Cainvest stated that it is preparing to supply liquidity for the stablecoin’s Ethereum and Bitcoin trading pairs that are available on present exchanges as well as upcoming markets.
The Brazilian stablecoin makes buying and selling cryptocurrencies easier without the need for fiat-based intermediaries by supporting transactions between regional exchanges.
The purpose of BRL1, according to Fabricio Tota, business director of Mercado Bitcoin, is to close the gap between conventional banking institutions and the cryptocurrency sector.
He believes that the “friction between the traditional financial system and the crypto world” can be eased with the help of BRL1. Tota to Valor said:
And when you introduce a real cryptocurrency, with the support of major players in this market, I think we are taking a few steps forward, we have a good chance of reaching this common user”
The three cryptocurrency exchanges have stated that the value of BRL1 will be fixed to the Brazilian Real, meaning that one BRL1 token will be worth R$1.
The nation’s National Treasury bonds will serve as the foundation and backing for the reserves. Charles Aboulafia, President of Cainvest, highlights that the token’s reserves will be transparently examined and made available to users.
The new cryptocurrency asset, controlled by the Central Bank of Brazil and has an initial quantity of R$10 million owned by MBPay and Nvio, Bitso’s and MB’s payment institutions, will be available on exchanges later this year.
In a year, the representatives of the cryptocurrency exchange anticipate that the stablecoin will trade for a total of 100 million BRL1 in issues.
