Brazil Stock Exchange wants to provide oracles for CBDC progress

One of the few Bitcoin (BTC) traded exchange funds in the industry is the Brazil Stock Exchange (B3), which is looking at ways to supply data inputs of digital currency to the central bank digital currency (CBDC) in the country.

Managing director of listed products and data at Brazil Stock exchange, Luis Kondic, said that the company is thinking of offering oracles to connect external data with the country’s CBDC, the digital realm. 

At an event organized by Brazil’s central bank, Luis made statements about CBDC. He said, “We are looking at it and evaluating the best ways to interact and participate in this ecosystem. However, I believe this is something for us to evolve. It will help us to move forward to meet the future needs of this programmable cash payments system.”

Brazil Stock Exchange and Central bank’s plans

Oracles are a critical component of smart contracts that offer data feed from foreign sources to perform smart contacts on special terms. Brazil Stock Exchange adds that smart contracts can conceivably provide Brazilian CBDC with various advantages. This includes the automatic distribution of profit based on B3 oracle inputs.

Luis explained the benefits of the application by giving several examples. He said that one could schedule the distribution of money among shareholders based on the company’s current profits. Another example is to schedule the automatic settlement of money for payments and issuance of pay suppliers and receivables inside a distribution chain.

Several other banks, including the Reserve Bank of New Zealand, have also discussed the advantages of smart contracts for CBDCs. One example is the automatic execution of bill payments.

In October last year, the central bank had formed a dedicated team for researching various aspects of the crypto industry. The statements by Luis came amidst the Brazilian central bank making progress on the same.

The Brazilian Central Bank published a presentation on September 9, 2021.  As part of its CBDC research, authority is exploring the possible smart contracts and decentralized financing applications.

After the expected proof of concept in 2022, the Central bank aims to roll out the first actual digital trials in 2023.