of the chosen platform with Ethereum will allow for easier integration with existing blockchain networks and decentralized applications, potentially increasing the adoption of the digital real in the future.
The pilot project will be conducted in partnership with several Brazilian financial institutions, including Banco do Brasil, Caixa Econômica Federal, and Banco Nacional de Desenvolvimento Econômico e Social (BNDES). The goal is to test the feasibility and security of the digital real in a controlled environment before rolling it out to the general public.
The digital real will be issued as a token on the blockchain, allowing for faster and more efficient transactions compared to traditional fiat currencies. It will also provide greater transparency and traceability, as all transactions will be recorded on the blockchain.
The central bank of Brazil has been exploring the possibility of a CBDC since 2020, citing the need to modernize the country’s financial system and increase financial inclusion. The digital real is expected to provide a secure and accessible alternative to traditional banking services, particularly for those who are unbanked or underbanked.
The success of the pilot project will be a crucial step towards the eventual launch of the digital real. If successful, Brazil will join a growing list of countries, including China and the Bahamas, that have already launched their own CBDCs.
The digital real pilot project is set to begin in the coming months, with the central bank of Brazil and its partners working towards a successful launch by the end of the year.
