Brazil’s central bank will focus its first real digital tests on determining the levels of privacy and security that can be achieved with the central bank’s proposed digital currency infrastructure (CBDC). The tests will be carried out later this year and will establish a simplified operation to make transactions with a yet-to-be-determined tokenized asset.
Brazil’s central bank is accelerating the real digital project, approaching its pilot phase. The institution announced that it would conduct a series of operational tests to verify the functionality of the proposed architecture for the system.
Fabio Araujo, the coordinator of the real digital project at the Central Bank of Brazil, explained that security and privacy would be two of the most important areas to examine with these tests. Araujo told Broadcast:
“We are going to simplify the operation, but we are going to have several participants exchange information to see the degree of security and privacy that we can bring to the system. The pilot is focused on that.”
Araujo explained that the goal behind this test would be to determine whether the leakage of transaction information derived from the system is compatible with current regulatory requirements.
Test Details
The tests described by Araujo would begin after the current laboratory phase of the digital realm, which is currently being carried out as part of the LIFT challenge, an open project that brings together several organizations. The challenge attracted nine different proposals that aim to include real digital as part of economic efforts.
Institutions and organizations that are part of the LIFT challenge must submit their final project reports by April 25. The new set of pilot tests is expected to take place after this event. However, the pilot will have limited scope, will be displayed in a simplified operating environment, and will only feature the introduction of another tokenized asset not yet selected for transactions.
The test will also allow Brazil’s central bank and Brazil’s Securities Commission to examine how third parties might interact with the system, including banks, which will be able to issue their digitally backed tokens. This expanded test environment will be open to institutions and banks in 2024.
While there is no announced release date for the digital real yet, Roberto Campos Neto, president of Brazil’s central bank, hinted at a 2024 launch date in December.
Source: Bitcoin.com
