• Aave Will Participate in Brazil’s Central Bank Innovation Challenge

  • Aave is one of nine ideas chosen to advance in Brazil’s digital innovation challenge.

    On March 3rd, the Brazilian central bank announced that it has chosen nine projects to advance in its challenge to design a central bank digital currency (CBDC). Aave is one of the initiatives.

    The LIFT Competition

    The Brazilian central bank unveiled the so-called LIFT Challenge, the current theme of which is “Real Digital.”

    • The fundamental goal of this challenge is to assess the technological feasibility of use cases for digital currency issued by the central bank. When submitting a proposal, participants must consider a number of factors, some of which include, but are not limited to:
    • The proposed solution’s scalability was intended for “national-scale retail applications.”
    • Privacy of the information utilized in the use case while adhering to existing regulations
    • Interoperability
    • Programmability

    Banco Central de Brasil has announced that they have chosen 9 projects for monitoring, representing around 20% of the total bids submitted by all 43 different companies.

    Aave Is Among the Chosen Few

    Aave is one of the initiatives that made the cut. The protocol “gathers resources from several savers (creating a liquidity pool) with an emphasis on making loans and ensuring the conformity of these operations to the laws of the financial system, utilizing DeFi instruments,” according to the protocol’s description.

    Santander Bank of Brazil, Febreban, Giesecke, VERT, Visa do Brasil, and others also had their ideas accepted for the next stage.

    Brazil is making significant investments in the bitcoin market. Senator Flavio Arns has submitted legislation to govern virtual assets and service providers like as brokers and cryptocurrency exchanges. It would prohibit the local SEC from interfering with crypto-related legislative efforts, excluding ICOs. The law was approved by the country’s Senate in late February and has now been forwarded on to the Chamber of Deputies.

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