Brazil Reveals Official Name of Central Bank Digital Currency (CBDC) – DREX
The Central Bank of Brazil has announced the official name of their new central bank digital currency (CBDC), which will be called DREX. The name represents a combination of digital, real (Brazil’s currency), electronic, and transaction. The announcement was made during a live broadcast on the bank’s YouTube channel by Fábio Araújo and Aristides Cavalcante.
Key Points:
– DREX will be based on distributed ledger technology (DLT) and will support operations like buying and selling public treasury bonds.
– Only authorized entities will have the ability to mint the CBDC, while citizens will use a tokenized version managed by authorized financial institutions.
– The goal of DREX is to reduce costs and promote financial inclusion in Brazil by making financial services more accessible to the public.
– In early July, the Central Bank published the digital real pilot project on GitHub, which allowed developers to inspect the system code and identify some problematic functions within the smart contract.
– Despite concerns over these capabilities, some developers argue that they could be useful in specific situations, such as improving tax tracking and enhancing transparency in government spending.
Hot Take:
The announcement of the official name for Brazil’s CBDC, DREX, marks an important step in the country’s push for greater financial inclusion. By leveraging distributed ledger technology, Brazil aims to improve access to financial services and enhance transparency in government transactions. However, concerns raised by developers regarding the smart contract’s functions highlight the need for careful consideration and oversight in the implementation of CBDCs.
By
By
By
By
By