Mercado Bitcoin, Foxbit, and Bitso, Brazil’s largest crypto exchange platform, have partnered to launch BRL1, the first stablecoin pegged to the value of the Brazilian Real.
On October 8, Brazilian media Valor reported that Mercado Bitcoin, Foxbit, and Bitso will issue a stablecoin pegged to the Brazilian real, which will be named BRL1. The Brazilian stablecoin, scheduled to be released later this year, will be issued in Ethereum and Polygon.
Digital bank Cainvest is preparing to provide liquidity for stablecoin Bitcoin (BTC) and Ethereum (ETH) trading pairs that will be listed on these exchanges and other markets that may be developed in the future. said.
Brazilian stablecoins are designed to accommodate transactions that take place between local exchanges, making it easy to buy and sell cryptocurrencies without using fiat-based rails.
Mercado Bitcoin Business Director Fabricio Tota said the goal behind the creation of BRL1 was to bridge the gap between traditional banking institutions and the crypto industry. He hopes BRL1 can ease “the friction between the traditional financial system and the crypto world.”
“And I think by introducing a real cryptocurrency with the support of a major player in this market, we are taking a few steps forward. There is a good chance that we can reach this mass audience.” Tota told Valor.
As the three crypto exchanges explain, the value of BRL1 will be pegged to the Brazilian Real. This means that 1 BRL1 token is equal to R$1. Reserves are backed by and constituted by a country’s national debt.
Charles Aboulafia, president of Cainvest, emphasized that the token reserves will be audited and disclosed with full transparency to users.
The new crypto asset is expected to be available on exchanges later this year, with an initial supply amounting to R$10 million, held by MB and Bitso’s payment institutions MBPay and Nvio, and regulated by the Brazilian Central Bank. It’s in
Representatives of crypto exchanges expect the total trading volume of stablecoins to reach 100 million reais1 issued in one year.
