Digital Currency
Credits: Macaonews

Brazilian Digital Currency passed the blockchain pilot test

A tokenized version of the digital real, the Brazilian central bank digital currency (CBDC), has passed a public blockchain pilot test successfully. The completed test is just a part of a whole array of projects that are being conducted to assess the behavior of the digital real in different situations.

The digital identity tasks were conducted by Clearsale and CPQD, which handled ID and fraud prevention processes in order to make these transactions compliant with Mercado Bitcoin Pay, the tool used by Mercado Bitcoin to process the transactions.

For these transactions to be in line with Mercado Bitcoin Pay. Moreover, the tool used to process them, Clearsale and CPQD, which handled ID and fraud protection operations, were enlisted to handle the digital identification chores.

Brazil
Credits: Smartassets.one

Furthermore, the organizations conducting this research claim that the results validate their hypothesis. That public networks like the Stellar blockchain may act as proxies for the functioning of the digital real.

Moreover, the finished test is merely one of several initiatives. Being carried out to evaluate the digital real’s behavior in various settings. The unique Laboratory of Financial and Technological Innovations (LIFT) challenge was issued in 2022, and Mercado Bitcoin is one of nine organizations chosen by the Central Bank of Brazil to undertake these tests.

President of the Brazilian Central Bank Roberto Campos Neto said on February 14 that a thorough pilot test will be carried out as soon as feasible in order to give a comprehensive development path for the central bank digital currency by December 2023, before the end of his term.

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The Stellar blockchain was used for the tests, which covered all of a regular user’s activities when using a tokenized, on-chain version of the digital real. The tests also included traceability, know your customer, and antifraud procedures derived from a digitally decentralized identity system.

The digital identity tasks were conducted by Clearsale and CPQD, which handled the ID and fraud prevention processes for compliance with Mercado Bitcoin Pay, the tool used by Mercado Bitcoin to process the transactions.

The success reveals that public networks such as the Stellar blockchain can serve as proxies for the operation of the digital real, according to the organizations behind the pilot testing phase. Fulvio Xavier, who heads special projects at Mercado Bitcoin, stated:

“Our thesis was to prove that it is possible, viable, and safe to carry out transactions with digital assets using a representation of the real on public networks. The Central Bank is always concerned about understanding what happens when transactions leave its hands.”