Name of Brazil’s Divisive Central Bank Digital Currency (CBDC) Made Public
The Central Bank of Brazil has unveiled the official name for its forthcoming central bank digital currency (CBDC): DREX, also referred to as the digital real.
The announcement, broadcasted on the bank’s YouTube channel, was made by Fábio Araújo, coordinator of the digital real. And Aristides Cavalcante, deputy head of the technology and information department. DREX derives from the combination of ‘digital,’ ‘real,’ ‘electronic,’ and ‘transaction. Symbolizing innovation and a further step in the successful Pix family. Pix is a platform offering instant, QR code-based electronic fund transfers. The CBDC will rely on authorized entities using distributed ledger technology and support operations like public treasury bond transactions. This initiative aims to expand financial services accessibility for Brazilians, facilitating loans, investments, and insurance.
Practical applications explored in the digital real pilot encompass government benefits distribution, cryptocurrency wallets for municipalities, and enhanced transparency in public funds utilization. The bank’s GitHub profile exposed some controversial smart contract functionalities, including account freezing, balance adjustment, and currency minting, prompting clarifications about their alignment with existing legislation.
Clever Robot News Desk 8th August 2023
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