This week, the Banco Central do Brasil announced the list of selected participants for its central bank digital currency (CBDC) pilot, the digital real. The first phase will focus on privacy and programmability features, testing the settlement of government bonds. Transactions will involve the simultaneous exchange of cash with title to the bonds or delivery versus payment (DvP).
Brazil has no plans for a retail CBDC, so the trials will use the CBDC for interbank transactions, with the consumer-facing element using tokenized bank deposits. Hence the list has many banks, including some participants in the previous LIFT Challenge, such as Visa, Santander, Itaú and B3.
The CBDC aims to support DLT, providing on-chain currency to enable securities transaction settlement.
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