Central Bank of Brazil is ready to start trials of its proposed CBDC across various use cases including in-store and offline NFC payments

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The Banco Central do Brasil (BCB) launches the pilot testing of digital real – the?developed central bank digital currency (CBDC) – with both online and offline transactions.

Currently, the bank accepts proposals from entities “able to test, based on their corresponding business model, transactions of issuance, redemption or transfer of financial assets, as well as to simulate the financial flows resulting from trading events.”

Reportedly, the digital real CBDC will be tested across various transaction types, including in-store and offline NFC payments.

BCB has been exploring CBDC opportunities since 2020. The working group that evaluated the utility and opportunities of the emerging technology had representatives from all the BCB′s technical?areas?and?the direct involvement of the following departments: International Affairs, Research, Currency Management, Financial System Monitoring, Banking Operations and Payments System, Financial Citizenship Promotion, Financial System Regulation, Conduct Supervision,?Information Technology and?the BCB’s Legal Department.

In 2022, the institution has selected business partners for the upcoming project. Finally, the CBDC prototype is reaching the final stages of its implementation. In March, BCB tested the blockchain-enabled platform supporting the centralized digital token.

At the time, it was reported that the?CBDC pilot would focus on wholesale transactions with a full rollout expected by the end of 2024. Finalising the project would place BCB among the?top 10 central banks leading in CBDC adoption.