Central Bank of Brazil opened the submission of applications for testing the digital real

The Central Bank of Brazil has invited financial institutions and other interested parties to participate in the testing of the digital Brazilian real.

The submission of applications for inclusion in the testing of the central bank’s digital currency is open from May 2 to May 12. The pilot program was officially launched in March, one of its stages is the purchase and sale of government bonds by individuals.

Subjects wishing to test CBDC need to meet certain criteria. First of all, they must be full-fledged participants in the Brazilian financial system. They should also have experience with distributed Registry technology (DLT) and with the Ethereum Virtual Machine (EVM).

The Central Bank of Brazil noted that it will allow different types of institutions to the project: commercial and investment banks, cooperatives, payment institutions and fintech companies. This will allow to fully perform the modeling of financial flows.

Fabio Araujo, coordinator of the Digital Real project at the Central Bank of Brazil, said that within the framework of the initiative, an Executive Management Committee (CEG) was created, which coordinates the development of the platform and the actions of the participants selected to participate in the pilot project. No more than 10 organizations will be involved in it, but with high demand, the number of “testers” can be increased.

In 2021, the Brazilian central bank announced that it had made significant progress in developing the digital real. One of the main tasks of this project is to solve cybersecurity issues and ensure data protection, since last year the Central Bank of Brazil was already attacked by the LockBit ransomware virus. Hackers demanded a ransom of 50 BTC for non-disclosure of information.