For the digitization of the real to be viable, it will be necessary to create a system for the clearing of financial transactions and the transfer of assets, which currently occur separately; However, with technology blockchain, it will be possible to fulfill these requirements simultaneously. The system being developed will allow liquidating a financial asset if only tokens are involved. Currently, financial compensation is possible through the transfer of reserves (FORCE) Central Bank (BC), and the change of ownership occurs in B3.

Brazilian payment system (St. Petersburg) was established two decades ago and brings together infrastructures and financial market participants; however, it is not compatible with smart contracts and blockchain money programming. Fabio Araujo, one of the people in charge of the Central Bank project, explained:

“We need to make a Digital Payment System that will be a platform for digital reality and that will have an integrated work with what already exists.”

Ethereum (English)Ethereum) will be one of the sources of inspiration. It is a public blockchain responsible for the concentration of over 2500 decentralized financial applications. The Brazilian chain, which is currently being identified for the bidding process to take place shortly, will be closed for legal and security reasons. Permissioned access will be granted to industry participants.

Real Digital will be the evolution of Open Finance

According to Rodrigo Henriquezdirector of innovation at Fenasbac (Federation of Central Bankers’ Associations), the system will be an extension of the existing one Open Finance. The approach will use the concept of context-based authentication to verify the identity of the user when considering the environment they are inserted into.

Celso Yungthe founder of Easyhash, added: “A connected refrigerator can initiate a financial transaction“. The idea is that machines connected to the Internet serve as initiators of payments. Since this is an iterative negotiation for a known recipient and uses values ​​that match the history of the parties involved, passwords and other means of authentication will be unnecessary.

Expected that True digital start the public testing phase this year and be available to Brazilian citizens from 2024. What is your opinion about this topic? Share your point of view on this!

Postponed: Central Bank says Real Digital trials won’t start until 2023
The graph indicates the official debut of the coin in the second half of 2024.

Source: Valor Economico, InfoMoney.

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