Central Bank of Brazil to Test Security and Transaction Privacy Levels of the Digital Real – The digital real initiative is moving quickly toward the pilot test stage at the Central Bank of Brazil. The organization declared that it will be running a number of operational tests to evaluate the system’s proposed architecture. Security and privacy will be two of the most crucial areas to be addressed with these tests, according to Fabio Araujo, the project coordinator for the digital real at the Central Bank of Brazil.
Araujo told Broadcast: “We are going to simplify the operation, but we are going to have several participants exchange information to see the degree of security and privacy that we can bring to the system. The pilot is focused on that.” Araujo explained that the objective behind this test would be to determine if the transaction information leakage derived from the system is compatible with current regulatory requirements.
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After the current laboratory phase of the digital real, which is being undertaken as a part of the LIFT challenge, an open project that brings together numerous organizations, the testing described by Araujo would begin. Nine different proposals that seek to integrate the digital real into economic pursuits were submitted in response to the challenge.
The deadline for final project reports from institutions and organizations taking part in the LIFT initiative is April 25. After this event, the new round of pilot tests is anticipated to be conducted. The pilot, however, will only demonstrate the addition of one more as-yet-unselected tokenized asset for transactions and have a constrained scope and operational environment.
The test will also enable the Central Bank of Brazil and the Brazilian Securities Commission to assess how outside parties, such as banks that will be permitted to issue their own tokens backed by the digital real, could engage with the system. In 2024, organizations and banks will have access to this extended test environment. The president of the Central Bank of Brazil, Roberto Campos Neto, hinted at a 2024 release date in December even though the digital real has yet to have an official launch date.
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