What is the LIFT Challenge?
The LIFT Challenge Real Digital was a groundbreaking initiative launched by the Central Bank of Brazil (BC) in partnership with Fenasbac. This special edition of the LIFT (Laboratório de Inovações Financeiras e Tecnológicas) program created a collaborative sandbox environment to explore innovative applications of DREX, Brazil's CBDC.
Challenge Overview
The initiative invited market participants to develop Minimum Viable Products (MVPs) that would demonstrate practical applications and assess the technological feasibility of a CBDC in Brazil's financial ecosystem.
Focus Areas
The challenge prioritized four key categories for online use cases:
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Delivery versus Payment (DvP)
- Settlement of transactions with digital assets
- Both native and tokenized asset support
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Payment versus Payment (PvP)
- Focus on currency exchange facilitation
- Cross-border payment solutions
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Internet of Things (IoT)
- Algorithmic settlement
- Machine-to-machine transactions
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Decentralized Finance (DeFi)
- CBDC-based protocols
- Regulatory compliance integration
Key Evaluation Criteria
Projects were assessed based on several critical factors:
- Interoperability with existing payment systems
- Scalability for nationwide retail applications
- Data privacy compliance
- Programmability potential
Project Timeline
The challenge unfolded across seven stages:
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Launch Phase (November 30, 2021)
- Theme definition
- Initial announcements
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Submission Window (January 10 - February 11, 2022)
- Project proposal collection
- Initial screening
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Development Phase (March - September 2022)
- Virtual laboratory setup
- Prototype development
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Conclusion (February - April 2023)
- Project completion
- Results presentation at LIFT Day