Though news circulated that last week the first prototype of the Real Digital would be issued, the measure did not materialize. The information was confirmed to EXAME by the National Federation of Central Bank Servants Associations (Fenasbac), which highlighted that this should only happen in the first half of 2023.
The organization is responsible for organizing the Lift Challenge, a kind of challenge that brings together companies with projects on possible ways to use the digital currency of the Central Bank of Brazil (CBDC).
“Fenasbac clarifies that the Real Digital has not been and is not expected to be issued within the scope and validity of the Lift Challenge laboratory: Real Digital”, reported the entity in a note.
According to Fenasbac, the Lift Challenge is a laboratory that explores use cases and technologies that will allow the creation of digital currency. In this sense, its issuance, or an initial version, “is more consistent with the next phase of development of the Brazilian CBDC, the pilot phase of projects, not yet selected, scheduled to start in the first half of next year”.
According to the federation’s plan, the Lift Challenge will end between the end of 2022 and the beginning of 2023. After that, the testing phase of pilot projects will begin, scheduled until the first half of 2024.
EXAME also contacted the Central Bank to discuss the matter. The municipality reported thatthe Real Digital initiative is in an initial testing phase”, where use cases are proposed.
The companies selected for the Lift Challenge “they have the freedom to choose the technological platform in their project. Each project issues its own fictitious version of digital currency, to simulate the system that implements the proposed use case“.
“These fictitious versions of digital currency are just technological devices that allow the prototypes in development to be tested and do not have any real monetary value.”, explains the Central Bank.
The statement points out that there could be fictitious currency issuance, but that they are not Real Digital or a prototype of it, and also highlights that “the ideal moment for the first emission of this type in each project depends on its evolution dynamics“.
Currently, the Lift Challenge has nine projectsof the following members:
Aave;
Banco Santander Brazil;
They febraban;
Giesecke and Devriente;
Itau Unibanco;
Bitcoin market;
Tecban;
vert;
Brazil Visa
The Central Bank sees the Brazilian CBDC as a way to intensify the digitization of the economy. The idea is that the Real Digital is used in actions such as the elaboration of the so-called smart contracts and to facilitate the prevention of fraud, the inhibition of the use of false money and the monitoring of transactions and amounts used in cases such as money laundering.
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