The Central Bank of Brazil has opened the application window for participating in Drex, the digital form of Brazilian currency. The portal will be open from today until November 29, 2024.

New Opportunities for Participants

The Brazilian Central Bank has long been exploring the introduction of tokenized currency into the economy. So far, several applications for real digital use cases, including government-funded loans and real estate, have been approved. Drex opens new avenues for participants to explore further digital currency use cases.

Drex Pilot Program

According to reports by outlets like Valor, participation in the Drex pilot program will be a crucial step in strengthening the country's financial system. The initial four phases involve 16 syndicates working with tokenized bank deposits and federal government bonds.

International CBDC Experience

Brazil is looking to foster the development of digital currencies like Drex, aligning with a global trend. Information from the Atlantic Council states that 134 countries are considering CBDCs, with 65 nations, including Brazil, already taking action towards this development. For example, China is advancing with the digital yuan, achieving significant milestones.

The introduction of Drex aids Brazil in strengthening its financial system and integrating additional use cases for tokenized currency within the economy.