The Central Bank of Brazil will focus its first digital real tests on determining the levels of privacy and security that can be achieved with the proposed central bank digital currency (CBDC) infrastructure. The tests will be conducted later this year and will set up a simplified operation to transact with a still-to-be-determined tokenized asset.

The Central Bank of Brazil is accelerating the digital real project, getting close to its pilot test phase. The institution announced that it would be conducting a series of operative tests to check 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 would be two of the most important areas to be examined with these tests. Araujo told Broadcast:

We are going to simplify the operation, but we are going to have several participants exchange information to see the degree of security and privacy that we can bring to the system. The pilot is focused on that.

Araujo explained that the objective behind this test would be to determine if the transaction information leakage derived from the system is compatible with current regulatory requirements.

(By Sergio Goschenko)