Central Bank of Brazil Announces Participants for Real Digital Tests, Including Foxbit

Asher Tame
Asher Tame News Business Finance
4 Min Read

The Central Bank of Brazil (BC) has revealed the selected projects that are going to participate in the Real Digital tests for the country’s central bank digital currency (CBDC) .With 36 proposals received in total, including individual applications and companies, over 100 institutions from various financial sectors expressed their interest in joining the pilot .Several cryptocurrency companies which also include the Foxbit exchange, have been included among the chosen participants.

Spotlight on Privacy and Use Case Testing

The Real Digital Pilot will focus on testing privacy and programmability functionalities through a specific use case, a delivery against payment (DvP) protocol for a federal public security transaction that involves clients from different institutions .This test scenario not only enables the examination of information exchange among platform participants, but also the interoperability and programmability of the services associated.

Participants and Incorporation into the Pilot

The BC selected representatives from financial institutions, payment institutions, cooperatives, public banks, crypto asset service developers, financial market infrastructure operators and payment arrangement setters .The selected participants include prominent entities such as Bradesco, Nubank, Banco Inter, Microsoft, Santander, Itaú Unibanco and many others .As of mid-June 2023, the Central Bank will start incorporating these participants into the Real Digital Pilot platform.

Real Digital Fuels Digital Transformation and Banking Technology Investment

Brazilian banks are significantly increasing their investments in technology with a total budget dedicated to technology expenses and investments expected to reach R$45.1 billion this year, that is a notable 29% increase compared to the previous year . According to the 2023 FEBRABAN Banking Technology Survey conducted by Deloitte ,this growth in investment reflects the need for scalability and flexibility in organizational operation which is driven by the adoption of resources such as Cloud and Artificial Intelligence.

Cybersecurity and Customer Centricity Remain Key Priorities

The survey also revealed that cybersecurity continues to be a head priority for all banks , with customer centricity as a key focus for 2023 .Investments in CRM, Artificial Intelligence, Analytics, and Big Data are expected to increase , that aims to boost personalization in client relationships and develop data exploration efficiency.

central bank of brazil announces participants for real digital tests including foxbitt

Banking Priorities for 2023: Data Analysis, Cultural Transformation and Digital Assets

The Febraban Banking Technology Survey stressed the key priorities for banks this year .Data analysis and exploitation through Open Finance ranked at first, followed by the cultural transformation of banks, digital currencies and assets, expansion of transactions by chatbots and encouraging consumers to share data .Banks are more and more focused on data exploration, cultural transformation and technological advancements, dragging investments in the Cloud to drive innovation.

In conclusion, the Central Bank of Brazil’s selection of participants for the Real Digital tests represents a significant step in the development of the country’s CBDC .The pilot will check privacy and programmability functionalities while incorporating diverse financial institutions and discovering the potential of digital transformation in the banking sector .

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Asher Tame
By Asher Tame Editor-in-chief
Hi there! My name is Asher, and I'm a Finance Editor based in Canada. I'm passionate about all things finance and have spent years honing my skills in the industry. I graduated from the Master of Finance program at the University of Toronto, which provided me with a strong foundation in financial theory and practice. Since then, I've worked in a variety of finance-related roles, including as a financial analyst and a financial advisor. These experiences have given me a deep understanding of the industry and a keen eye for detail. As a Finance Editor, I'm responsible for overseeing the financial content produced by my team of writers. I work closely with them to ensure that our articles are accurate, insightful, and relevant to our readers. I'm committed to providing our readers with the information they need to make informed decisions about their finances.
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