In a significant stride towards digitizing its financial landscape, the Central Bank of Brazil has unveiled “DREX” as the official name for the country’s forthcoming central bank digital currency (CBDC), also known as the digital real. The announcement was made during a live broadcast on the Bank’s YouTube channel, where Fábio Araújo, the coordinator of the digital real, and Aristides Cavalcante, deputy head of the Central Bank’s technology and information department, revealed the name and showcased the new visual branding.
DREX stands for “digital,” “real,” “electronic,” and “transaction,” combining multiple innovative elements to emphasize the currency’s digital nature and its potential for swift, secure transactions. The name was chosen to complement the success of Pix, a Brazilian platform that facilitates instant, free electronic fund transfers using QR codes and user-friendly identifiers like phone numbers and email addresses, instead of traditional account numbers.
The digital real will be minted by authorized entities and recorded on a distributed ledger technology similar to blockchain. It will enable a range of operations, including buying and selling public treasury bonds, that will occur seamlessly and efficiently with the support of Web3 infrastructure for token creation, burning, and registration.
Citizens will interact with the tokenized real, a representation of the digital real, solely through authorized financial institutions. This strategic approach aims to provide Brazilians with increased access to financial services, fostering easier loans, more accessible investment options, and simplified insurance processes.
Project coordinator Fábio Araújo highlighted the practical impact DREX will have on the lives of everyday Brazilians, as it empowers them with enhanced financial opportunities and possibilities. With the digital real, the goal is to bring various financial products to the fingertips of the population and boost banking services across Brazil.
As the Central Bank of Brazil unveils DREX as the official name for its digital real, the nation takes a momentous step towards modernizing its financial ecosystem, poised to benefit citizens and businesses alike. The digital currency’s implementation is expected to usher in a new era of financial inclusivity and efficiency in the country.