The Brazilian Central Bank has taken a significant step towards the rollout of its central bank digital currency (CBDC) by uploading a collection of CBDC-related documents to GitHub. The documents, which were uploaded to the bank’s GitHub page on June 3 and subsequently updated on June 4, contain key details about four aspects of the coin: the architecture of the CBDC’s ongoing pilot, network connection issues, smart contracts, and “sample smart contracts.”
However, some GitHub users expressed their disappointment that the documents did not include the project’s source code. One user raised the question of which block explorer the central bank planned to use, while another called for the source code to be made public, stating that since it was developed using taxpayer money, it should be accessible to everyone for examination and improvement.
In response to these demands, a user claiming to be a Business Assistant at the bank stated that the source codes of the contracts developed for the digital real’s pilot would be published once the tests were completed and necessary code audits were conducted. The user also clarified that the choice of block explorers would be left to the participants, as each entity would select the explorer that best suited their needs.
The Brazilian Central Bank has previously revealed that the pilot CBDC will utilize an open-source, Ethereum network-compatible permissioned blockchain called Hyperledger Besu. This choice allows the pilot to avoid licensing costs. Moreover, the bank has made it clear that its CBDC will focus on the benefits it will bring to businesses, rather than retail users, differentiating it from other CBDCs. Governor Roberto Campos Neto reaffirmed this approach, emphasizing that “digital payments” were just a small part of the equation for the digital real team.
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Several major financial institutions in Brazil, including some notable crypto players and crypto-focused firms like neobanking unicorn Nubank, are collaborating with the central bank on its pilot. The bank has set a target to roll out the CBDC by 2024 and has already unveiled a calendar of pre-launch events and seminars.
However, lawmakers have pointed out that legislation must be updated before the bank can proceed with the CBDC project. Senator Carlos Portinho stated that the project could potentially pave the way for state entities, such as city halls and local government offices, to create their own cryptocurrency wallets. Portinho highlighted that the ability for state-run bodies to hold tokens is not currently addressed in existing legislation.
In conclusion, the Brazilian Central Bank’s upload of CBDC-related documents to GitHub signifies a significant step towards the nation’s digital real rollout. While some GitHub users expressed disappointment over the absence of the project’s source code, the bank clarified that it will be published after completing the necessary tests and code audits. With the involvement of prominent financial players and the aim to focus on business benefits, Brazil’s CBDC project shows promise, though legislative changes are required to fully realize its potential.
