Focusing on DeFi and tokenization Banco Central will start testing Real Digital in 2022 and is already starting to receive proposals for the CBDC

 Central Bank focuses on DeFi, Internet of Things and tokenization within the Real Digital platform, which will be launched, in the testing phase, as early as 2022

The Central Bank of Brazil took another step towards the launch, in the testing phase, of Real Digital dain in 2022 in the country as it announced that the LIFT Challenge Real Digital is already receiving project proposals that bring use cases to the digital version of the Real. Submission of proposals can be done exclusively through the website and continues until February 11th.

It is "(...) clear the need to consider potentials and risks for the specific applications [of CBDCs] in each country. Thus, in order for us to move forward safely, it is necessary to promote tests", says Roberto Campos Neto, president of the Central Bank.

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According to the BC, the initiative to open up to the market the possibility of presenting use case projects for Real Digital aims to identify the fundamental characteristics of an infrastructure for Real Digital, which will be able to support the use cases presented that are mature and bring value to Brazilian society.

"Standardization, interoperability, reuse of protocols and composition of financial services - which are characteristics brought by the programmability of Real Digital - can make new financial products reach a wider audience faster and operating with average values ​​below what is possible today The potential for using Real Digital to promote financial inclusion is very high", says Fabio Araujo, from the BC Executive Secretariat (Secre).

The BC also highlights that the initiative is aimed at mature companies that have the ability to implement a highly complex system, such as Real Digital.

"One cannot ignore, however, the business model that is intended to make this system viable. Companies that only have the capacity to offer infrastructure or only the capacity to offer a use case for Real Digital are not the focus of this challenge" , explains Fabio.

Real Digital

Also according to the BC, the target audience is market participants, bringing together a qualified audience of banks and payment institutions, fintechs and technology companies interested in developing a minimum viable product (MVP) based on Real Digital. .

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The BC highlights that the proposals submitted, which must be presented according to the rules defined by the Coordination of the Executive Management Committee, will be submitted in two phases.

• Submission for the first phase must be done with the expression of interest in participating in the edition, information from the person responsible for the proposal and contact e-mail for contact purposes and communication development throughout the LIFT Challenge period.

• Submission for the second phase will involve the description of the project, acceptance of the conditions of the Lift Challenge Real Digital and a video containing an overview of the project and highlighting the innovative aspects of it in a total of up to 5 minutes.

Preference will be given for project selection over the following categories of use cases in an online environment:

Delivery versus Payment (DvP for delivery versus payment) aimed at the settlement of transactions with digital assets, both native to the digital environment and tokenized;

Payment against Payment (PvP of the English expression payment versus payment) focused on the exchange between currencies;

Internet of Things (IoT) aimed at algorithmic settlement or directly between machines;

Decentralized finance (DeFi) aimed at defining protocols with settlement based on a CBDC and taking into account compliance and supervision requirements established in the standard.