Brazil's central bank postpones CBDC pilot to next year over privacy concerns

Brazil's central bank postpones CBDC pilot to next year over privacy concerns

Brazil's central bank has postponed the pilot of its central bank digital currency (CBDC) project, dubbed Project Real Digital, to next year. The pilot was originally scheduled to begin in December of this year but has been pushed back to July of next year due to concerns over insufficient privacy safeguards. The central bank's decision to postpone the pilot comes after a public consultation on the project raised concerns about the potential for the CBDC to be used for surveillance and tracking of financial transactions. The central bank has said that it will use the additional time to develop and implement stronger privacy protections for the CBDC. The pilot will now test the implementation of new features, including smart contracts, by third parties. The central bank has also said that it will continue to engage with the public on the project and will seek feedback on the design of the CBDC before it is launched. The postponement of the CBDC pilot is a setback for Brazil's efforts to become one of the first countries to launch a central bank digital currency. However, it also shows that the central bank is committed to ensuring that the CBDC is designed and implemented in a way that protects the privacy of users.