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Brazilian CBDC Digital Real Succeeds in Public Blockchain Pilot Test

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.


Representative image of the central bank digital currency (CBDC) of Brazil, the digital real


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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