Brazil plans to launch its central bank digital currency (CBDC) named DREX in 2024, aiming to enhance financial services and join the global trend of CBDC adoption.
Key Points
- Brazil’s central bank digital currency (CBDC), named DREX, is set to launch in 2024 to enhance financial services.
- Joining global trend alongside countries like China, Russia, and the UK in introducing CBDCs.
- DREX will utilize distributed ledger technology for interbank transactions and improve access to financial services.
- Support from finance companies like Mastercard, Sinqia, and Mercado Libre for Brazil’s CBDC initiative.
The central bank digital currency (CBDC) issued by Banco Central do Brasil is reportedly set to see the light of day in 2024. Its main purpose will be to boost financial services in the country.
JUST IN: Brazil will launch its own Central Bank Digital Currency (CBDC) in 2024.
Brazil is going to use the #XRP ledger to bridge trillions of dollars! 🚀📈 pic.twitter.com/7MNVYrkZTL
— JackTheRippler ©️ (@RippleXrpie) August 9, 2023
Joining the Global Trend
The South American nation is not the only one willing to introduce such a monetary product. China, Russia, Japan, Australia, the United Kingdom, and many more have also displayed such intentions.
As reported by Reuters, Brazil’s CBDC will be named DREX and is expected to go live next year. It will employ distributed ledger technology (DLT) to settle wholesale interbank transactions, whereas retail access will be based on the digital equivalent of existing bank deposits.
Fabio Araujo – coordinator of the digital real – said DREX will aim at advancing the domestic financial network by improving access to monetary services. He raised hopes that it could also boost investments, lending, and insurance services.
“By enabling simple and reliable access to registered values through DLT technology, we reduce costs and democratize access to financial services,” he stated.
Support from Finance Companies
Araujo argued that some Brazilians have already started conducting digital settlements via the payment platform Pix. It is interesting to note that well-known finance companies have supported Brazil’s CBDC project.
Some examples are the payment processing giant Mastercard and the leading developer of software services Sinqia. The largest cryptocurrency exchange in the country – Mercado Libre – also joined the initiative.
