The Central Bank of Brazil will focus its first real digital tests on determining the levels of privacy and security achievable through the proposed central bank digital currency (CBDC) infrastructure. The tests will be conducted later this year and will create a streamlined process for handling an as-yet-unidentified asset token.
The Central Bank of Brazil will begin to launch the real digital testing process later this year
The Central Bank of Brazil is accelerating the true digital project, as it approaches the beta testing phase. The corporation announced that it will conduct a series of operational tests to verify the functionality of the proposed architecture for the system.
Fabio Araujo, Coordinator of the Real Digital Project at the Central Bank of Brazil, explained that security and privacy will be two of the most important areas to be examined through these tests. Araujo told the broadcast:
We will simplify the process, but we will have several participants exchange information to see what degree of security and privacy we can bring to the system. tThe pilot focuses on that.
Araujo explained that the goal of this test is to determine whether the transaction information leak derived from the system is compliant with current regulatory requirements.
The tests described by Araujo will start after the current digital reality laboratory phase, which is currently being conducted as part of the LIFT Challenge, an open project that brings several organizations together. The challenge attracted nine different proposals aimed at including digital reality as part of economic endeavours.
Institutions and organizations participating in the LIFT Challenge must submit final project reports on April 25th. The new set of beta tests is expected to take place after this event. However, the demo will be limited in scope, as seen in a simplified operating environment, and will only involve entering another unspecified token asset for transactions.
The test will also allow the Central Bank of Brazil and the Brazilian Securities Commission to examine how third parties interact with the system, including banks, who will be able to issue their own tokens backed by digital reals. This expanded testing environment will be open to institutions and banks in 2024.
While there is still no announced release date for the digital real, Roberto Campos Neto, President of the Central Bank of Brazil, hinted at a 2024 release date in December.
What do you think of the stated focus of real digital exams? Tell us in the comments section below.
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