Recent news in the crypto world: the Brazilian Central Bank has launched a pilot test of its digital currency, the Digital Real, on the Stellar blockchain. The move should make digital payments more accessible to millions of Brazilians.
The growth of the Stellar project in the crypto world
Stellar Lumens, or XLM, is a crypto that has been gaining popularity in recent years.
It is a decentralized platform that enables fast and secure transactions. The Stellar network was created with the goal of facilitating the movement of money across borders, especially for those who do not have access to traditional banking systems.
The Stellar blockchain has some key features that make it an ideal platform for digital currencies such as the Digital Real. For one, the Stellar network is highly functional and designed for mass adoption by enterprises.
It can handle thousands of transactions per second, making it an ideal platform for digital currencies that need to handle large volumes of transactions. It also allows the creation of customized tokens, which can be used to represent any asset, such as fiat currency or commodities.
Second, the network is highly secure. It uses a consensus algorithm called the Stellar Consensus Protocol (SCP), which ensures that transactions are validated by a network of trusted nodes. This means that Digital Real will be highly secure and resistant to hacking and other malicious attacks.
Brazil’s new CBCD: the Digital Real
The pilot test of the Digital Real is expected to replicate the success of the Brazilian instant payment system Pix. Pix was launched in November 2020 and has quickly become one of the most popular payment methods in Brazil.
The system enables instant payments between individuals and businesses, 24/7, without the need for intermediaries. With the Digital Real, Brazil’s central bank intends to make digital payments even more accessible to millions of Brazilians.
We are talking about a central bank digital currency (CBDC), which means it is issued and backed by the central bank. CBDCs are digital versions of fiat currencies designed to be used in everyday transactions.
They are now gaining popularity around the world as governments and central banks seek to modernize their payment systems and reduce their reliance on cash.
The Digital Real will lead to a number of benefits for Brazilians. First, it will make digital payments more accessible to people who do not have access to traditional banking systems.
According to a World Bank report, about 45% of Brazilians do not have access to a bank account. Digital Real will allow these people to make digital payments without the need for a bank account.
Second, Digital Real will make payments more efficient and convenient. Digital payments are faster and cheaper than traditional payment methods such as cash and checks. Digital Real will enable Brazilians to make instant payments without the need for intermediaries, reducing transaction costs and increasing efficiency.
Finally, it will make payments more secure. The Brazilian CBDC will be issued and backed by the Central Bank, which means it will be highly secure and resistant to hacking and other malicious attacks. This will give Brazilians more confidence in using digital payments, further increasing adoption.
The Digital Real and Stellar’s crypto ecosystem
The launch of the Digital Real on the Stellar blockchain is a significant development for both the blockchain industry and the CBDC space.
It demonstrates that blockchain technology is being recognized as a viable platform for CBDCs and that the Stellar network is considered a highly functional and secure platform for digital currencies.
The launch of Digital Real on the Stellar blockchain also represents a significant development for the country:
Brazil has been working for several years to modernize its payment systems and reduce dependence on cash. The launch of Pix in 2020 was an important step forward, and the pilot testing of Digital Real on the Stellar blockchain should further accelerate this process.
In addition, the release of the coin on the Stellar blockchain should have implications beyond Brazil. The Stellar network is a global platform that can be used by anyone, anywhere in the world.
This means that other countries and central banks could potentially use the Stellar network to issue their own CBDCs.
Among the many benefits of the launch, it should also increase the adoption of Stellar Lumens (XLM) as a cryptocurrency. XLM is the native cryptocurrency of the Stellar network and is used to pay transaction fees and maintain the network.
The launch of Digital Real could increase the demand for XLM, resulting in an increase in its value.
In essence, it is safe to say that the launch of Digital Real on Stellar’s blockchain represents a significant development for the CBDC space and the blockchain industry as a whole.
It shows that blockchain technology is being recognized as a viable platform for CBDCs and that the Stellar network is considered a highly functional and secure platform for digital currencies.
It is also a significant development for Brazil, as it demonstrates the country’s commitment to modernize its payment systems and reduce dependence on cash.
The success of Digital Real’s pilot test of the Stellar blockchain could lead to its wider adoption in Brazil and other countries.
It could also lead to greater adoption of Stellar Lumens (XLM) as a crypto.
As other countries and central banks look to issue their own CBDCs, it will be interesting to see if they also choose to use blockchain technology and, if so, which blockchain platform they choose to use.
CBDCs are gaining more and more importance and the projects related to them are really many. The crypto world is ready to make its own revolution, moving from central banks across countries.