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Real Digital – The Monetary Innovation of Brazil’s Central Bank

The Real Digital is a digital currency proposal from the Central Bank of Brazil (BCB), which aims to modernize the national financial system and improve the efficiency of the payments market.

In this context, information security and data protection are key aspects to ensure the reliability and acceptance of this new way of conducting financial transactions using digital currency.

In this article, we will explore the context of the Digital Real, its development stages, and the importance of information protection in the process.

The growing importance of central bank digital currencies on the global stage

In Brazil, the BCB has been following the topic for a few years. In August 2020 it organized a working group to conduct studies on the issuance of a digital currency by the institution.


The group had representatives from all areas of the Central Bank
and counted on the direct involvement of several departments, especially International Affairs, Financial System Monitoring, Banking and Payment System Operations.

Preliminary results were presented to Directorate of the institution, which determined the establishment of a regular forum to discuss the topic with the Central Bank’s technical staff.

The discussions conducted in this forum motivated:

  1. The publication of the project guidelines in May 2021;
  2. Holding a series of webinars to discuss the potential applications of the new currency with society;
  3. The Lift Challenge Real Digital, with the goal of developing technological solutions for the implementation of the new currency.

According to the Central Bank project coordinator, Fabio Araújo,
the Real in digital format will work as a
a Pix
on a large scale
, allowing instant large-value wholesale transfers, such as for large companies and financial institutions.

The road to the development and implementation of the Digital Real in Brazil

The first phase of the project involves the development of a test platform that registers assets of various types and natures.

The platform chosen was Hyperledger Besu, which operates on open source, which reduces costs with technology licenses and royalties.

Hyperledger Besu is compatible with
technology
Ethereum technology
, which is responsible for the architecture used by the Ether (ETH) cryptocurrency and other decentralized applications.

The technology allows tests in controlled environments, guaranteeing the privacy of transactions. BC’s reasons for choosing Hyperledger Besu.

According to the Central Bank, the testing phase will be completed in December 2023
and in March 2024
, if the Hyperledger Besu platform can support the simulated transactions, it will be used to set up the Digital Real.

The goal is to reach Real Digital maturity starting in 2024

The schedule foresees the availability of Real Digital to the population by the end of next year. During the test phase, each participant from the financial sector is to contribute its share of the infrastructure.

In April, the Central Bank will organize a workshop with financial institutions and technology companies to pass on the guidelines. Starting in May, the monetary authority will choose the participants of the pilot project.

With the participants defined, there will be transaction tests with Real Digital in a simulated environment, without real values. The assets to be used in the pilot will be as follows:

  • Deposits from bank reserve accounts, settlement accounts, and the National Treasury’s single account;
  • Bank deposits on demand;
  • Payment accounts of payment institutions;
  • Federal government bonds.

The National Treasury will participate in the testing phase to enable the construction of cheaper and more efficient technology for trading government bonds in the primary and secondary markets.

In the simulated operations, a fictitious investor will buy government bonds through the bank’s application that will connect to the test platform.

In addition, the tests will also include the possibility of liquidating loans with long-term investment funds without without disposing of the entire financial application.

Successful implementation of the project can lead to a more inclusive, competitive, and efficient financial system. However, there are still challenges and tests to be carried out to ensure the viability and security of the digital currency.

Eval is tracking Real Digital’s progress

Eval, a reference in technology and innovation, closely follows the progress of Real Digital and foresees a scenario of major changes in the country’s financial sector.

In fact, there is the expectation that the new digital currency will transform the Brazilian financial system, bringing greater efficiency and financial inclusion to the population.

Soon, Real Digital should open doors for the development of new financial services, further expanding the offer of technological solutions in the market.

47 projects were presented, of which 9 were selected to “test” the Real Digital. were selected to “test” the Real Digital, innovative solutions that can be developed based on the Brazilian currency platform in digital format.

It is also worth mentioning, the scenario of collaboration opportunities with the Central Bank of Brazil and other financial institutions in the development and implementation of the Digital Real.

As with PIX, Eval, with all its knowledge and expertise in technology and innovation, can contribute significantly to the project’s success.

Ensuring the safety and security of financial transactions will be key to the success of the Digital Real

With the increase in digital transactions, the need for effective security measures becomes even more important to prevent fraud and data breaches.

In this context, solutions such as the
Hardware Security Module (HSM)
or Data Protection on Demand
DPoD
which in short is an HSM in the cloud, play a key role.

HSMs are physical cryptographic devices that provide an additional layer of security to protect cryptographic keys. When integrated with Hyperledger Besu, HSM can raise the level of Real Digital’s reliability.

By using HSMs in the Real Digital infrastructure, the BCB can ensure that financial transactions are processed with a high level of protection.

This protects both the users and the financial institutions involved, and with it greater confidence in the Real Digital.

About Eval

EVAL has been developing projects in the financial, health, education, and industry segments for over 18 years. Since 2004, we have offered solutions for Authentication, Electronic and Digital Signature, and Data Protection. Currently, we are present in the main Brazilian banks, health institutions, schools and universities, and different industries.

With value recognized by the market, EVAL’s solutions and services meet the highest regulatory standards of public and private organizations, such as SBIS, ITI, PCI DSS, and LGPD. In practice, we promote information security and compliance, increase companies’ operational efficiency, and reduce costs.

Innovate now, lead always: get to know Eval’s solutions and services and take your company to the next level.

Eval, safety is value.

Categories
Data Protection

Cryptographic Key Management in the cloud, meet DPoD

Many organizations face difficulties in implementing an effective cryptographic key management system. This is due in part to the complexity of the process and the tools needed to implement and maintain a secure system. This is when HSM in the cloud makes the difference.

To reduce complexity in Cryptographic Key Management, companies implementHardware Security Modules (HSM) solutions that can be deployed on-premises or in the cloud.

HSM in the cloud overcomes the challenge of Cryptographic Key Management

HSM in the cloud basically consists of a secure hardware device that is being managed by a cloud provider.

The cloud provides access to cryptographic keys for the business applications that need them, without exposing the keys to the security risks associated with the Internet.

Companies are increasingly interested in using the cloud for their business because of the advantages it offers, such as flexibility, scalability, and cost-effectiveness.

By allowing keys to be managed outside the corporate network, the cloud simplifies the process and makes it more secure.

This means that keys no longer have to be stored in a single location and can be accessed from anywhere in the world, 24 hours a day.

Managing cryptographic keys using HSM in the cloud also offers more flexibility in terms of scalability.

Keys can be created and managed dynamically to meet business needs, without the need for a large up-front investment.

HSM in the cloud also allows keys to be easily shared across different departments and geographies, which simplifies collaboration and makes it easy for teams to work together.

Finally, cryptographic key management using HSM in the cloud offers greater control and traceability. Keys can be tracked and monitored to ensure they are being used according to company policies.

Are Cloud Cryptographic Key Management as secure as on-premise HSMs?

When it comes to security, people tend to think that “local is always better”. However, this is not always true, especially when it comes to cryptographic key management.

In fact, many organizations are finding that using cloud HSMs can provide more security than on-premises security modules.

This is because cloud HSMs are generally more secure than on-premise HSM. After all, they are running in a secure environment being managed by highly experienced security teams.

In addition, Cryptographic Key Management using cloud HSMs generally have more security features than on-premises security modules, which means they are less likely to be compromised.

However, it is important to note that cloud HSMs are still susceptible to attacks.

Therefore, organizations should take steps to secure their security modules, as well as look for providers that offer robust security features.

Thales Data Protection on Demand (DPoD): not just security, data protection on demand

Thales Data Protection on Demand is a cloud-based platform that provides a wide range of Cryptographic Key Management services using and HSM in the cloud through a simple online marketplace.

With Data Protection on Demand (DPoD), security is simpler, more cost-effective, and easier to manage because there is no hardware to buy, deploy, and maintain.

Thales Data Protection on Demand is just a click away. Just click and deploy the protection your company needs, provision services, add security policies, and get usage reports in minutes.

Achieve data security quickly and efficiently

With Data Protection on Demand, you have access to a wide range of security services simply by clicking and deploying what you need to protect dozens of applications and use cases.

It’s as simple as that.

Zero upfront capital investment and pay-as-you-go pricing

There is no hardware or software to buy, support, and upgrade, so you have no capital expenditure.

Plus, with unique pay-as-you-grow pricing, you have the flexibility to purchase services to meet your changing business needs.

 

infographic HSM Moderno

 

Protect data anywhere and meet compliance mandates

With DPoD, you can protect sensitive data in any environment, cloud, hybrid or on-premises, to manage your security policies and meet regulatory and compliance requirements. Protect the data you create, store, and analyze.

Enable your applications with cryptography: Blockchain, Cloud, and Internet of Things.

Centralize management of Cryptographic Keys across all clouds

Data Protection on Demand is cloud-independent, so whether you use Salesforce.com, Amazon Web Services, Google, IBM, and Microsoft Azure, or a combination of cloud and on-premises solutions, you are always in control of your encryption key management.

Easily integrate with your cloud, hybrid, and IT services

Data Protection on Demand comes with pre-configured APIs that make it easy to integrate Luna Cloud HSM and cryptographic key management services to protect your applications and data.

With seamless key migration between Luna Cloud HSM services and Luna HSM on-premises appliances, Thales helps customers ensure that their data and the keys to that data are secure.

This holds true regardless of where your information resides. In addition, the company supports third-party HSM integration, common SDK and API support, and high-availability group access for local Luna devices and DPoD services.

Infinite scalability and elasticity

Scale up or down the cryptographic key management and HSM services as your requirements change. You can easily extend cloud and hybrid HSM and key management capabilities and encryption features without limitations.

Focus on your business

Not in the management of security hardware and software. Find out how the Eval and Thales partnership can help your company.

Use Data Protection on Demand and you won’t need to purchase, provision, configure, and maintain hardware and software for your HSM and cryptographic key management needs.

All physical hardware, software, and infrastructure are managed by the existing official partnership between Eval and Thales, including an SLA, so you can focus on your business.

We deploy and manage cryptographic key management module services and hardware security, on-demand and in the cloud.

  • Focus on services, not hardware;
  • Implants in minutes, not days;
  • Buy only what you need and reduce costs;
  • Protect data anywhere;
  • Real-time reporting and visibility;
  • It integrates easily with existing applications, infrastructure, and IT services.

Data Protection on Demand (DPoD) has expanded its service capabilities to include partner-led security services, expanding the value of Thales Luna HSMs’ extensive range of integrations across the entire security ecosystem.

With on-demand data protection, Eval and Thales can offer encryption and key management services quickly and easily.

Eval Professional Services has a team of specialized professionals with the best practices in the market

Benefit from our years of experience and expertise in information security and compliance with the General Data Protection Act (LGPD).

We will be your partner for realizing digitization projects in compliance with security and data protection regulations.

We share our expertise across all business flows in healthcare organizations to help you minimize risk, maximize performance, and ensure the data protection your patients and partners expect.

About Eval

EVAL has been developing projects in the financial, health, education, and industry segments for over 18 years. Since 2004, we have offered solutions for Authentication, Electronic and Digital Signature, and Data Protection. Currently, we are present in the main Brazilian banks, health institutions, schools and universities, and different industries.

With value recognized by the market, EVAL’s solutions and services meet the highest regulatory standards of public and private organizations, such as SBIS, ITI, PCI DSS, and LGPD. In practice, we promote information security and compliance, increase companies’ operational efficiency, and reduce costs.

Innovate now, lead always: get to know Eval’s solutions and services and take your company to the next level.

Eval, safety is value.