Mercado Bitcoin tests a tokenized version of the digital real


Cryptocurrency platform Mercado Bitcoin has successfully tested a tokenized version of the Brazilian digital real using the Stellar network

Cryptocurrency platform Mercado Bitcoin has successfully tested a tokenized version of the Brazilian digital real using the Stellar network. The digital real project, which represents Brazil’s efforts to create a central bank digital currency, is taking steps towards a potential issuance.

Local cryptocurrency exchange Mercado Bitcoin has conducted a series of pilot tests that explored the interconnection of a tokenized version of the digital real. Using the Stellar blockchain as a public blockchain, the tests went through all of the steps that a regular user would have to perform in order to use a tokenized, on-chain version of the digital real. These included Know Your Customer (KYC) and antifraud procedures procured from a digital decentralized identity system.

The ID and fraud prevention processes were handled by Clearsale and CPQD, which ensured that the transactions would not conflict with Mercado Bitcoin’s transaction processing tool, Mercado Bitcoin Pay. Since the pilot testing phases were successful, they proved that the Stellar blockchain could act as a proxy for the operation of the digital real. Mercado Bitcoin officials cited by news.

bitcoin. com explained that the plan was to prove the feasibility and safety of conducting transactions with digital assets using a representation of the real on public networks. Brazil’s CBDC testing phase In February 2023,  Brazil revealed its plans to launch a real-world suite of digital tests for its CBDC, focusing on protecting the privacy of financial data and transactions.

The goal is to ensure the security of the CDBC as well as the privacy of customers. In order to completely understand how the digital real would behave in different situations, the Central Bank of Brazil has selected nine institutions (Mecardo Bitcoin included) to conduct more tests as part of the Laboratory of Financial and Technological Innovations (LIFT) challenge. The LIFT challenge is an open initiative that is being participated by a large number of organisations.

Any of those organisations need to meet a set of requirements in order to be part of the challenge, such as handing in their different project reports or files on or by 25 April 2023 at the latest. After that, the pilot testing process for the digital real may be allowed to go continue. Following the release, the pilot will be further carried within a restricted and well-controlled scope.

In the end, the sole tokenized asset which will be used for transactions will be the one to become recognised by the industry. .


Mar 01, 2023 12:38
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