The Brazilian Government, through the Banco Central do Brasil (BCB), is advancing its central bank digital currency (CBDC) project, ‘Drex,’ by entering its second phase of experimentation. This phase focuses on key development themes like collateralized credit and trade finance, involving partnerships with major technology and payment companies.
The project aims to address data privacy challenges and explore the use of smart contracts in a distributed-ledger technology (DLT) ecosystem. The BCB’s role includes overseeing the implementation and testing of these digital innovations to ensure the CBDC’s viability and governance.
