Brazil‘s Central Bank has launched the second phase of its digital currency pilot, Drex, inviting companies to participate from October 14 to November 29. The initiative aims to test complex applications for the tokenized real, such as government-backed loans, agribusiness assets, and carbon credits. Thirteen proposals have already been approved, further advancing Brazil’s efforts to integrate blockchain technology into its financial system.
In the initial phase, 16 consortiums, primarily led by banks, explored the digital real using decentralized networks. However, privacy concerns remain, with four participants yet to resolve transaction anonymity issues. The president of Brazil’s Securities Commission highlighted that tokenization is a promising business model with long-term potential and stressed the need for regulation within the financial framework.
Brazil’s progress in developing its central bank digital currency (CBDC) aligns with global trends. According to the Atlantic Council, 134 countries are exploring CBDCs, with Brazil among the 65 nations at the most advanced stages. China, for instance, has made significant headway, with its digital renminbi (e-CNY) surpassing $1.02 trillion in transactions by October 11.
