Brazil has been working on its CBDC project for a long time and has been calling it Digital Real. Brazil’s Central Bank revealed on Monday the new CBDC (Central Bank Digital Currency), named DREX, which will soon launch next year.
Brazil intends to enhance the nation’s digital payment structure and strengthen financial services with the launch of CBDC. Aristides Cavalcante, the deputy head of the Central Bank’s technology and information department, and Fábio Araújo, the coordinator of the digital real, made the announcement live on the central bank’s YouTube channel.
They explained the meaning of the DREX and its uses in the future.
They stated that DREX will enhance the payment methods like scanning QR codes and IDs like phone numbers to make payments.
DREX is based on Distributed Ledger Technology (DLT). It will enable transactions like buying and selling treasuries bonds. Web3 infrastructure will be the important foundation for DREX.
The Central Bank officials have stated that by the end of 2024, the adoption of CBDC will be started and right now it is in the testing phase.
Brazil believes this will reduce costs and democratize financial services.