Digital Real (DREX)

2023: Product Announcement

On August 7, 2023, the Central Bank of Brazil announced the national digital currency DREX. It will reportedly be used to improve the quality of financial services in this country in South America.

Fabio Araujo, coordinator of the Digital Real project at the Central Bank of Brazil, and Aristides Cavalcante, deputy head of technology and information, said that the abbreviation DREX stands for elements of innovation: D is digital, R is real, E is electronic, while the X symbol is associated with transactions on the Brazilian platform Pix. The Pix system offers instant, free electronic funds transfers using QR codes and easy-to-remember identifiers such as phone numbers and email addresses (instead of account numbers).

Brazil's central bank announces DREX national digital currency

DREX is said to have a positive impact on the lives of ordinary Brazilians - especially in terms of expanding the financial services that can be offered to the public. In particular, the procedure for obtaining loans will be simplified. Digital money will make banking more accessible to people.

By providing easy and reliable access to assets through Distributed Registry Technology (DLT), we reduce costs and democratize access to financial services, Araujo stated.

Brazilians are making extensive use of digital payments through the Pix instant transaction platform, which launched in late 2021, it said. This system has become widespread in the country. The implementation of DREX is expected to support lending, investment and insurance services in Brazil. In the future, it will be possible to pay social and labor benefits using tokenized currency. Blockchain technology is supposed to change transparency and oversight of public power on its own.^[1]

Notes