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Brazilian digital real passes public blockchain pilot test with flying colors – News Bitcoin News
A tokenized version of the digital reality, the Brazilian Central Bank Digital Currency (CBDC), has passed a public blockchain pilot test. The test, which was conducted by Mercado Bitcoin, a local exchange, which uses the Stellar network, shows that the digital real token can be used in public blockchains following all compliance rules set by Brazilian laws.
Digital Real Completes Stellar Blockchain Test
The Digital Real Project, a Brazilian initiative to build a digital central bank currency, is progressing toward possible issuance. Mercado Bitcoin, a local exchange, informed that a series of pilot tests designed to investigate the interconnection of a tokenized version of the digital reality were successfully completed.
The tests used the Stellar blockchain as a public blockchain, and included all the steps that a normal user would have to perform to use a tokenized, on-chain version of the digital real, and included traceability, know-your-customer and anti-fraud procedures, derived from a digitally decentralized identity system.
The digital identity tasks were performed by Clearsale and CPQD, which handled ID and fraud prevention processes to make these transactions compatible with Mercado Bitcoin Pay, the tool used by Mercado Bitcoin to process the transactions.
According to the institutions behind this test, this success shows that public networks like the Stellar blockchain can serve as proxies for the operation of digital reality. About this, Fulvio Xavier, responsible for special projects at Mercado Bitcoin, stated:
Our thesis was to prove that it is possible, viable and secure to transact digital assets using a representation of reality on public networks. The central bank is always keen to understand what happens when transactions leave their hands.
More tests
The completed test is just one part of a whole series of projects that are carried out to assess the behavior of the digital reality in different situations. Mercado Bitcoin is part of the nine institutions chosen 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.
On February 14, Roberto Campos Neto, President of the Central Bank of Brazil, revealed that a full pilot test would be carried out as soon as possible to deliver a comprehensive development roadmap for the central bank’s digital currency in December 2023, before his mandate ends.
What do you think of the latest digital reality tests? Tell us in the comments section below.
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