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Central Bank of Brazil Tests Security and Transaction Privacy Levels of Digital Real – Blockchain

The Central Bank of Brazil will focus its first digital real-world tests to determine the level of privacy and security that can be achieved with the proposed Central Bank Digital Currency (CBDC) infrastructure. Testing will be conducted later this year and will establish a simplified process for transactions involving a tokenized asset to be determined.

Central Bank of Brazil will start testing Digital Real later this year

The Central Bank of Brazil is accelerating the Digital Real project and nearing its pilot testing phase. The institution announced that it would conduct a series of functional tests to verify the functionality of the proposed architecture for the system.

Fabio Araujo, the coordinator of the Digital Real project at the Central Bank of Brazil, explained that security and privacy are two of the most important areas examined in these tests. Araujo told Broadcast:

We will simplify operations, but several participants will share information to see how much security and privacy we can bring to the system. TThe pilot concentrates on that.

Araujo explained that the goal behind this test is to determine whether the transaction information leaks derived from the system are compliant with current regulatory requirements.

test details

The tests described by Araujo would start after the current laboratory phase of digital reality, which is currently being carried out as part of the LIFT challenge, an open project bringing together different organizations. The challenge attracted nine different proposals aimed at embracing digital reality as part of economic endeavors.

Institutions and organizations participating in the LIFT challenge must submit their final project reports by April 25th. The new series of pilot tests is expected to be conducted after this event. However, the pilot will be of limited scope, will be demonstrated in a simplified operating environment and will only involve the introduction of another, not yet selected, tokenized asset for transactions.

The test will also allow the Central Bank of Brazil and the Brazilian Securities Commission to study how third parties might interact with the system, including banks, who will be able to issue their own tokens backed by the digital real. This extended test environment will be open to institutes and banks in 2024.

While there is no announced launch date for the digital real yet, Roberto Campos Neto, Governor of the Central Bank of Brazil, hinted at a December 2024 release date.

What do you think of the announced alignment of the digital real tests? Tell us in the comment section below.

Central Bank of Brazil Tests Security and Transaction Privacy Levels of Digital Real – Blockchain, Crypto Trading News

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price surge took place in December 2017. He has a computer engineer background, lives in Venezuela and is socially affected by the cryptocurrency boom. He offers a different take on crypto’s success and how it’s helping those who are unbanked and underserved.

photo credit: Shutterstock, Pixabay, WikiCommons

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Source: Crypto News Deutsch

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