of Central Bank of Brazil have been actively working In advancing the development of a digital currency known as Drex. Beyond its function as a payment medium, Brazilian CBDC Drex Giving Brazilian citizens access to a wide range of financial services, including smart contracts and programmable money (some might prefer the terms ‘shuttle’ or ‘forced’).
Currently, the South American powerhouse’s monetary authority has yet to release details about the launch of monetary policy. Drex, also called digital real. Nonetheless, the central bank is said to be aiming to end a pilot test of public participation in the program in 2024. However, it is highlighted in the agency’s statement. Official website A successful launch requires both the project and the market participants to reach the appropriate maturity level.
essentially, Drex It basically represents a modern interpretation of the Brazilian real. Brazil’s central bank says it is based on a technology platform that enables efficient and democratic provision of financial services.The central bank further argues that Drex It has great potential to make a positive contribution to the daily lives of Brazilians. The main purpose behind Drex, or at least the public narrative, is to increase the effectiveness of financial markets and promote financial inclusion.
What is Brazilian CBDC Drex?
practical realization of Drex Includes an ecosystem rooted in distributed ledger technology. Within this system, regulated financial intermediaries will convert demand deposits and e-currency deposits into digital currency, thereby enabling customers to access a range of advanced financial services.
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This manifests itself as both a retail business. Brazilian CBDC Drexfacilitates easy access to secure financial transactions using digital assets and smart contracts, as well as wholesale. Drex, issued by the central bank through the Drex platform.It’s similar to PixBrazil’s real-time payment system, the central bank, aims to democratize financial services such as credit, investment and insurance provision.
An essential guiding principle in the development of Digital Real is seamless compatibility with the existing set of publicly accessible payment methods. Users can make payments at stores through designated payment service providers, such as banks, PSPs, or authorized institutions approved by central banks. The same applies to transfers of digital reals to other individuals, conversion of digital reals held in banks into traditional bank deposits, physical withdrawals of digital reals, and settlement of invoices and taxes.
Essentially, users Drex In a manner similar to the current treatment of resources held by banking institutions. Various countries, including the Bahamas and Nigeria, have already introduced similar digital currencies, and China is running the world’s largest pilot project in the field.
China, which is at the forefront of this, recently announced that transactions through digital currencies surpassed 1.8 trillion yuan ($249.33 billion) at the end of June last year. This achievement greatly surpassed the 100 billion yuan transaction value in August of the previous year. According to Lee Kang’s reportcentral bank governor.
While these figures confirm China’s leadership in the field of national digital currencies, adoption of such currencies is still in its early stages. Known as e-CNY, the digital yuan has so far been used primarily for domestic retail payments.
The United States, the European Union, and about 130 other regions, which account for 98% of the global economy, are currently exploring the feasibility of introducing their own digital currencies. This effort is a notable trend despite its inherent risks and early stages.
tags: brazil CBDC drex