New digital face of the Brazilian real promises to make the country modern, connected, and innovative.
Drex: The Brazilian Digital Real
The financial world is constantly evolving, and Brazil is not left behind.
With the announcement of Drex by the Central Bank (BC), the country definitively enters the era of digital currencies. But what is Drex and how does it differ from traditional cryptocurrencies? Let’s find out.
Origin of the Name
The name Drex was not chosen by chance. It embodies the essence and proposal of the new Brazilian digital currency:
D for digital, R for real, E for electronic, X symbolizes modernity and connection, making a clear reference to Pix, the instant transfer system that revolutionized transactions in Brazil.
Difference Between Drex and Cryptocurrencies
Unlike cryptocurrencies, which are decentralized digital assets, Drex is the digital representation of the Brazilian real. It will be fully issued and controlled by the Central Bank.
While cryptocurrencies operate on a market logic, with fluctuations and speculations, Drex will follow the same policies as physical money. The main difference? Drex will be on the blockchain, while the physical real is printed.
More Security in Transactions
Security is a major concern when we talk about digital money. The BC, aware of this, ensured that there will be robust cyber security for all Drex transactions.
It’s worth noting that fraud risks are more associated with human behavior than with the technology itself.
How Much will it Cost?
The Central Bank indicated that there may be a cost associated with Drex. This will be related to the financial service provided by the offering institution.
However, the exact details about the costs are still being defined.
Integration with Financial Institutions
The integration of Drex with banks is a crucial step for its implementation.
The Central Bank expects all participants in the Drex pilot to be connected to the system by mid-August.
Major institutions, such as Banco do Brasil and Caixa Econômica Federal, are already actively involved in the testing and development of Drex.
With its implementation planned for the end of 2024, the country positions itself at the forefront of financial innovations, showing that it is ready for the challenges and opportunities of the digital economy. Drex is not just a digital currency, but the affirmation of a modern, connected, and innovative Brazil.
