• Mercado Bitcoin announced the successful completion of a series of pilot tests to analyze the interoperability of a tokenized version of Brazil’s central bank-issued digital currency (CBDC) called „Digital Real“.
• The Stellar public blockchain was utilized for the experiments and included procedures for using a tokenized, on-chain version of the Digital Real from a digital decentralized identity system, with traceability, KYC, and antifraud measures.
• This is merely one initiative towards releasing the Digital Real by December 2023 as per the Central Bank of Brazil’s plan.

Pilot Test For Brazil’s CBDC ‚Digital Real‘ Successfully Completed

Mercado Bitcoin announced the successful completion of a series of pilot tests that were aimed at analyzing the interoperability of a tokenized version of Brazil’s central bank-issued digital currency (CBDC) called „Digital Real“. The Stellar public blockchain was utilized for these experiments which included procedures for using a tokenized, on-chain version of the Digital Real from a digital decentralized identity system, with traceability, KYC, and antifraud measures.

The Unique LIFT Challenge

The Brazilian government has set out their plan to create this CBDC which is making progress towards its likely release date. This test was conducted under the unique Laboratory of Financial and Technological Innovations (LIFT) challenge which was issued in 2022. Mercado Bitcoin is one among nine organizations chosen by the Central Bank of Brazil to undertake these tests.

Analysis & Results

For these transactions to be in line with Mercado Bitcoin Pay, tools such as Clearsale and CPQD were enlisted to handle digital identification chores like ID and fraud protection operations. The organizations conducting this research claim that their hypothesis has been validated – that public networks like Stellar blockchain may act as proxies for functioning of Digital Real – through successful results from these tests.

Brazilian Central Bank Plan

President Roberto Campos Neto said on February 14 that they will carry out thorough pilot testing soon to provide comprehensive development path for Central Bank Digital Currency (CBDC) before his term ends in December 2023.

Conclusion

This test is just one among several initiatives being carried out to evaluate how well Digital Real behaves in different settings before it can be released officially by December 2023.