The Central Bank of Brazil launches a pilot project of the state digital currency

The Central Bank of Brazil is going to conduct a series of tests of its own digital currency by the end of 2023, promising to make it private and secure..

Fabio Araujo, coordinator of the Digital Real project at the Central Bank of Brazil, said that at the first stages of testing, the level of information disclosure in the managed blockchain will be checked, on the basis of which the digital Brazilian real is going to function.. We need to find out whether this level of confidentiality will comply with legal requirements. The security of the infrastructure should also be checked when exchanging digital real between the participants of the pilot project.

During the tests, the Central Bank of Brazil and the Brazilian Securities Commission want to understand how third parties will be able to interact with the system and whether banks are ready to issue their own tokens backed by digital real. This extended test environment will be available to financial institutions and banks as early as 2024, the developers promise.

Araujo explained that the tests will begin after the end of the current phase of digital realism research, which is currently being carried out as part of an open project of the Brazilian Financial and Technological Innovation Laboratories (LIFT). The pilot involves nine projects working on use cases for the state stablecoin. Organizations participating in the LIFT project must submit reports on the results of their work by April 25th.

Brazilian central bank planned to launch its own digital currency as early as 2022. However, the regulator later said that the launch of the digital real would have to be postponed for several years, as more time was needed to study its capabilities.