As part of the pilot project, the consortium members will focus on testing three aspects of the Brazilian Central Bank’s digital currency, namely the wholesale and retail delivery of CBDC, and the use of digital real in National Treasury bill transactions.
Based on the results of the pilot project, the consortium participants will provide the state regulator with their proposals on future technical aspects of network construction and likely data management models in distributed ledger networks.
According to Brazilian media reports, at the same time that the consortium was approved, the Central Bank engaged an alternative group of participants consisting of state bank Caixa, processing company Elo and technology corporation Microsoft to pilot test CBDC.
It was previously reported that the Central Bank of Brazil sees CBDC as a way to increase the participation of economic entities in the country’s financial system and plans to put the digital real into circulation by 2024.