Brazil is one of those many countries that desperately want to have their own CBDC. Admittedly, Nicolas Madura is no longer at the head of the government. The current president Lula Da Silva nevertheless seems to want to continue what the former administration has already started. We are obviously referring to the “Digital Real” project initiated in 2020. Today, this same project is reaching a historic milestone. The CBDC of Brazil indeed passes the test of the Stellar blockchain with flying colors.
Verdict: Brazil’s CBDC compatible with public blockchains
To test the compatibility of the Brazil CBDC, Mercado Bitcoin used the Stellar network. “Our thesis was to prove that it is possible, viable and safe to transact with digital assets using a representation of reality on public networks. explained Fulvio Xavier, Special Projects Manager at Mercado Bitcoin.
Why did you choose Stellar? Quite simply because it is a public blockchain. Specifically, the purpose of the test was to examine the interconnection of the tokenized version of Digital Real from Brazil.
Traceability, decentralized digital identity system, fight against fraud… These are all elements scrutinized. Also, the test included all the steps of using a digital currency. Verdict: Brazil’s CBDC can be used on public blockchains. It meets the standards required by Brazilian laws as well as current crypto regulations.
A result that is just as beneficial for Stellar
Brazil is not the only one to benefit from the success of this test. The Stellar blockchain also has something to gain from it. It can serve as a proxy to ensure the functioning of the CBDC of Brazil. It is also an alternative for the transfer of assets.
Once again, Brazil is taking a giant leap in the adoption of crypto solutions. However, let’s not get too carried away! Certainly, the current government can authorize the issuance of a CBDC in Brazil. But nothing guarantees the approval of the global central banking community. AT follow…
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