Brazil’s Central Bank Expands Digital Real Pilot for Retail Payments

Brazil’s central bank has announced an expansion of its Digital Real pilot program, moving from wholesale testing into retail transactions for the first time. The move represents a major step in the country’s effort to launch a central bank digital currency (CBDC) that can be used by citizens and businesses in everyday payments.

The pilot, which began in 2023 with a focus on interbank settlements, will now include participation from commercial banks, fintech firms, and selected retailers. Starting in September 2025, a limited number of consumers will be invited to test the use of Digital Real wallets for making purchases at stores, transferring funds between peers, and paying for services such as utilities.

Roberto Campos Neto, president of the Central Bank of Brazil, said the retail expansion is designed to evaluate how the CBDC performs under real-world conditions. “We want to understand how Brazilians interact with the Digital Real in their daily lives, from buying groceries to sending money to family members. This phase will help us ensure security, efficiency, and usability at scale,” he said.

The Digital Real will operate on a permissioned blockchain designed by the central bank in collaboration with major financial institutions. Each unit of Digital Real will be fully backed by reserves held at the central bank, ensuring parity with the physical real. Officials emphasized that the CBDC is not intended to replace cash but to provide an additional payment option that leverages the benefits of digital technology.

One of the goals of the project is to promote greater financial inclusion. Brazil has one of the most advanced digital payment systems in the world with its instant payments platform, Pix, which already serves more than 150 million people. However, central bank officials argue that the Digital Real can build on this foundation by enabling programmable payments, smart contracts, and seamless cross-border transactions.

During the retail pilot, consumers will be able to load Digital Real into mobile wallets provided by participating banks and fintech companies. Transactions will be instant and settled directly on the central bank’s blockchain ledger, reducing the reliance on intermediaries. The system will also test offline payments, which would allow transfers even without internet connectivity, an important feature for remote and underserved areas.

The expansion has drawn international attention, as Brazil is among the largest economies to move aggressively toward a retail CBDC. Analysts note that success could put Brazil ahead of many other countries exploring similar projects, including the United States and several European nations still in earlier stages of research.

Industry stakeholders are cautiously optimistic. Retailers see opportunities in faster settlement and lower transaction costs, while fintechs hope to leverage the CBDC for innovative financial products. Critics, however, warn of privacy concerns and the need to clearly define the role of private banks in a CBDC-driven system. The central bank has promised strict safeguards, including encrypted data and limited traceability of personal transactions.

If the pilot proves successful, Brazil could roll out the Digital Real nationwide as early as 2026. For now, the retail trial marks a critical milestone in the country’s digital currency journey, offering a glimpse into how one of the world’s most dynamic financial markets may evolve in the years ahead.