- Brazil’s central bank has made it clear that participants should participate in the experiments to foster privacy solutions.
- The introduction of Drex in Brazil will lead to stepping ahead in becoming a digital currency friendly country.
- Brazil is trying to position itself at a place from where it can open the way for integrating additional use cases for tokenized currency for the economy.
The Central Bank of Brazil is accepting applications for participating in Drex, the digital form of Brazilian currency. The portal is open from today and will last till 29 November 2024. The idea of the members is to bring the tokenized currency options in Brazil.
The Bank has so far accepted the application of 13 real digital use cases such as govt. Funded loans, real estates and many more like these. Now, moving forward to the second step that is Drex, it will be focused on persons who wish to participate in examining beyond use cases that have already been investigated.
More about Drex Pilot
Valor, a prominent media outlet, has reported that EMC of the Drex pilot will take the account of all the applications submitted within the deadline. More the participants, smoother the path of setting up the virtual currency. It will also help in strengthening the financial system of the country in the forthcoming years.
In the initial four phases, the tokenized real in a decentralized environment by 16 syndicates will be carried out. During the time of trials, the tokenized form of the bank deposits as well as the federal government bonds were used extensively. This was the foundation of introducing digital currency within the boundaries of the country.
Brazil’s central bank has made it clear that participants should participate in the experiments to foster privacy solutions. Before this, no scalable solution was derived to hide the details of transactions between participants only and give privacy the utmost priority.
CBDCs integration in different countries
Brazil is making an effort to promote digital currencies like Drex. An information shared by the Atlantic Council states that about 134 states are giving a thought to hold CBDCs. At the same time, about 65 countries such as Brazil have already put the foundations of holding CBDCs.
If we take the example of China, it has so far moved in the direction of development of digital yuan mostly known as e-CNY. On October 11, about 7.3 trillion yuan were settled in the digital renminbi system and the total personal wallets opened accounted for about 180 million.
The introduction of Drex in Brazil will lead to stepping ahead in becoming a digital currency friendly country. The country is working in a way to strengthen the financial system by incorporating it with the digital currency.
In the second phase of this project, Brazil is trying to position itself at a place from where it can open the way for integrating additional use cases for tokenized currency for the economy.
