Brazilian CBDC Digital Real Succeeds in the Public Blockchain Pilot Test
Brazil's digital real, a tokenized central bank digital currency (CBDC), has succeeded in the public blockchain pilot test. The test was done by Mercado Bitcoin, a crypto exchange in Brazil using the Stellar Network. The digital real token can now be used in public blockchains in compliance with rules as per the law of the land in Brazil.
Digital Real Completes the Stellar Blockchain Test
The
digital real project, a Brazilian government initiative for building a central
bank digital currency, has emerged with flying colors. Mercado Bitcoin, a
cryptocurrency exchange, has announced the successful completion of a series of
pilot tests with the tokenized version of the digital real.
The
Stellar blockchain was used for the tests, which covered all of a regular user's
activities when using a tokenized, on-chain version of the digital real. The
tests also included traceability, know your customer, and antifraud procedures
derived from a digitally decentralized identity system.
The
digital identity tasks were conducted by Clearsale and CPQD, which handled the
ID and fraud prevention processes for compliance with Mercado Bitcoin Pay, the
tool used by Mercado Bitcoin to process the transactions.
The
success reveals that public networks such as the Stellar blockchain can serve
as proxies for the operation of the digital real, according to the
organizations behind the pilot testing phase. Fulvio Xavier, who heads special projects at Mercado Bitcoin, stated:
"Our
thesis was to prove that it is possible, viable, and safe to carry out
transactions with digital assets using a representation of the real on public
networks. The Central Bank is always concerned about understanding what happens
when transactions leave its hands."
LIFT Challenge
The
completed test is one of several projects being carried out to evaluate the
digital real in various situations. Mercado Bitcoin is one of the nine
institutions the
Central Bank of Brazil selected to run the tests as part of the special Laboratory of Financial
and Technological Innovations (LIFT) challenge issued in 2022.
On
February 14, Roberto Campos Neto, president of the Central Bank of
Brazil, revealed that a full
pilot test would be conducted as soon as possible to deliver a comprehensive
development road map for the central bank digital currency by December 2023,
before the end of his mandate.
What
is your take on the successful digital real tests? Please post your comments.
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