Visa has announced its partnership with the Brazilian central bank to explore blockchain technology-powered usage cases for the prototype digital real. The project aims to design the coins with a view to helping local businesses and is set to launch later this year. The financial platform, created in collaboration with Agrotoken, Microsoft, and Sinqia, is designed for small and medium-sized enterprises (SMEs) in the agricultural industry. The platform will provide an interoperability solution, Universal Payment Channel (UPC), which will enable traders and companies to make a connection between the Brazilian CBDC and other CBDCs, stablecoins, or tokenized deposits. The firms believe that the platform will help expand financing options available to SMEs and reduce inconvenience caused by a lack of access to traditional services.

Tokenising traditional contracts for farmers

Visa claimed to have made use of Agrotoken’s agricultural commodity tokenization expertise to transform existing Brazilian legal documents into on-chain, tradable non-fungible tokens (NFTs). The payments firm added that it had developed an on-chain sealed-bid auction solution, using smart contract technology, which will allow a pool of global blockchain investors to participate in the funding process for SME financing. The platform’s developers claim that it brings existing financial processes and assets onto the blockchain protocol, allowing farmers to tokenize traditional contracts. Catherine Gu, the Global Head of CBDC at Visa, gave the example of enabling a Brazilian soybean producer to create and auction a contract globally, which has been tokenized on an authorized version of the Ethereum blockchain, using different interoperable forms of money.


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