Kofi Mensah The Central Bank of Brazil has announced that they are launching a digital real pilot project. This digital version of the Brazilian currency will be created using an Ethereum-compatible “permissioned” blockchain. The chosen open-source platform named Hyperledger Besu, was picked because it doesn’t cost any money to use it and only requires maintenance payments if the platform is finally selected.
Brazil to Launch Tokenized Digital Real Currency with Hyperleder Besu
Brazil is planning to launch its own digital currency called the digital real by the end of 2024. The central bank of Brazil has chosen Hyperledger Besu, which is a blockchain platform that works with Ethereum, as the technology base for creating the tokenized version of digital real.
Experts think that by having the same features as Ethereum, many businesses would start using tokenized digital real like money. This means more companies can compete with each other financially but could also make banks less important in our new digital economy. JC Bombardelli, the Chief Technology Officer of Gama Academy, which is an educational tech startup, mentioned this idea.
The government won’t do something called ‘defi’, which would make them give up certain controls. That’s why they chose Hyperledger Besu, because it’s open-source so they don’t have to pay for a license.
Creating Digital Real
This month, the government will start testing a new type of digital money called the ‘Digital Real’. This money can be used for lots of different transactions and is supplied by banks that keep deposits as protection. The Digital Real will have two parts, with only certain approved organizations allowed to manage it. Fabio Araujo from the Central Bank of Brazil talked about this new setup.
“We will stick with the same rules as before to make sure everything is still equal. The digital currency mainly be used for banking transfers and there will be a type of special coin created by banks specifically called ‘stablecoin’.”
Banks are using a digital real structure to keep their operations safe and make sure it meets certain privacy laws. For example, the Chinese digital yuan works like actual money – you can use it to buy things with a digital wallet. What do you think about using something called Hyperledger Besu, which is compatible with Ethereum, for the creation of this digital real? Let us know in the comment section!
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