Brazilian Digital Real Passes Public Blockchain Pilot Test – The digital real project, a Brazilian effort to create a digital currency for the central bank, is moving closer to being issued. A local exchange, Mercado Bitcoin, reported that several pilot tests intended to evaluate the connection of a tokenized version of the digital real were completed successfully.
The testing made use of the public Stellar blockchain and all the steps that a typical user would need to take in order to use a tokenized, on-chain version of the digital real, including traceability, know your customer, and antifraud protocols developed from a digital decentralized identity system.
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In order to make these transactions compliant with Mercado Bitcoin Pay, the platform utilized by Mercado Bitcoin to execute the transactions, Clearsale and CPQD handled the digital identification chores and handled ID and fraud protection procedures. The institutions sponsoring the test claim that this result demonstrates how open networks like the Stellar blockchain may act as stand-ins for the operation of the digital real.
On this, Fulvio Xavier, responsible for 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.”
The completed test is only one of numerous initiatives being carried out to evaluate how the digital real will behave in various scenarios. Mercado Bitcoin is part of the nine institutions selected by the Central Bank of Brazil to run these tests, as part of the special Laboratory of Financial and Technological Innovations (LIFT) challenge issued in 2022.
The president of the Central Bank of Brazil, Roberto Campos Neto, announced on February 14 that a full pilot test would be carried out as soon as possible to offer a whole development path for the central bank digital currency by December 2023, before his term ends.