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- Digital Real, the Brazilian CBDC has just been featured in a trial test involving Stellar Lumens.
- This trial, though pivotal for the Stellar ecosystem is unlikely to stir the XLM token price growth.
The initial pilot test involving the Brazilian Digital Real, the country’s Central Bank Digital Currency (CBDC), has been completed and is notably successful. The pilot test was carried out on the Stellar Lumens protocol, showcasing the interoperability capabilities of the Digital Real.
The test was conducted by the major Brazilian trading platform, Mercado Bitcoins and the test showed that Digital Real can be used in public blockchains while complying with all of the established regulatory rules established by the Brazilian government.
The Stellar Lumens Enabled Digital Real Test
The pilot test involved several steps featuring similar steps that the average user will have to pass through when interacting with the tokenized version of the Digital Real. Amongst the test carried out is the Know Your Customer (KYC) verification and anti-fraud procedures as well as the traceability and an on-chain decentralized identity process.
The choice of the Stellar Lumens protocol is centered on the fact that the protocol is a highly functional one that is designed for mass enterprise adoption. The conducted Digital Real trial was fragmented with key aspects given to startups with specialized expertise.
For instance, the Digital Identity aspect of the trial was conducted by Clearsale and CPQD. Riding on their foolproof technology, the duo handled the Identity verification and fraud prevention process to enable full compliance with Mercado Bitcoin’s payment tool, Bitcoin Pay.
With governments around the world focused on the uncertainties that might emanate from having their CBDCs operated on foreign protocols, the public test is a showcase that the government can still monitor the essential fraud prevention mechanisms available via mainstream public blockchain. Fulvio Xavier said
Our thesis was to prove that it is possible, viable, and safe to carry out transactions with digital assets using a representation of the real on public networks. The Central Bank is always concerned about understanding what happens when transactions leave its hands.
It is worth noting that the Stellar Lumens involvement and the test, in general, is just one of the many that the Brazilian Central Bank hopes to conduct before making the decision on whether or not to issue a Digital Real or not.
The desire to float a Central Bank Digital Currency has grown over the past years as governments around the world see this as the next phase in the evolution of money. Mercado Bitcoins is one of the nine outfits tapped by the Central Bank to conduct this series of tests.
The Stellar Showcase
Although Stellar Lumens is playing a key role in the broader testing, there is no guarantee that it will be chosen as the blockchain protocol for the issuance of the Digital Real. This implies that the influence of its involvement may be short-lived and may not yield any major bullish impact on price.
Nonetheless, Stellar Lumens is an innovative protocol that has even started pushing the boundaries of its network toward a smart contracts-enabled one. This later development will aid the XLM token growth in the mid to long term.
