Central Bank kicks off pilot project for digital real

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The development and testing phase is expected to last until February 2024. Public launch should take place at the end of 2024. Buying and selling securities will also be tested. The Central Bank announced this Monday (6th) that it has started the pilot project for the digital real, the country’s future official virtual currency. The test will be carried out in a simulated environment, not involving real transactions and values. Access will be restricted to financial institutions authorized by the BC. These institutions will still be chosen and will participate in the pilot starting in May. During the pilot project, the participation of end users will be simulated through encrypted deposits (tokenized) of the digital real. The test phase will also include a simulation of the purchase and sale of public securities, in partnership with the National Treasury. This will be one of the uses of the new version of the Brazilian currency, that is, it will be possible in the future to buy and sell public securities using the digital real. The platform chosen by the Central Bank to test the digital real was Hyperledger Besu. Central Bank foresees implementation of the ‘digital Real’ in up to 3 years Schedule The development and testing phase is expected to last until February 2024. Starting in March of next year, an evaluation stage is planned before the release to the public. According to the coordinator of the digital real initiative, Fabio Araujo, the expectation is that the currency will be launched to the public by the end of 2024, as already anticipated by the BC president, Roberto Campos Neto. “We work with the expectation of managing to mature the project enough to allow access to the population at the end of 2024”, said Araujo. In practice, the digital real will be an extension of the real that exists today. It will be issued by the Central Bank and guarded by the monetary authority. The main focus will be for use in financial transactions, despite having other applicability, including being able to be converted and withdrawn into paper money. “The fundamental difference [do real digital] will be the technology, you can gain efficiency and lower the cost and provide services that are not possible today”, explained Araujo. According to Araujo, banks have shown great interest in the use of virtual currencies issued by Central Banks. These currencies are different from cryptocurrencies , which are private and without ballast What will the digital real be? will remain at the Central Bank; it can be exchanged for the traditional real (in banknotes), and vice versa, but the focus will be on financial transactions; the quotation against other currencies will also be the same; banks will not be allowed to lend these resources to third parties , as currently happens with the physical real, and then return them to the customers; there will be no remuneration, that is, the resources will not have an automatic correction; there will be a guarantee of legal security ca, cyber and privacy in operations.

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