Global: Brazil’s Central Bank Introduces DREX as Official CBDC Name

The Central Bank of Brazil has marked a significant leap toward the digital transformation of its financial landscape by revealing “DREX” as the official designation for the forthcoming Central Bank Digital Currency (CBDC), also recognized as the digital real. The announcement was delivered via a live broadcast on the bank’s YouTube channel, where Fábio Araújo, coordinator of the digital real initiative, and Aristides Cavalcante, deputy head of the Central Bank’s technology and information department, unveiled the name and introduced the new visual branding.

“DREX” stands for “digital,” “real,” “electronic,” and “transaction,” incorporating multiple innovative elements to underscore the currency’s digital essence and its potential for fast, 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 such as phone numbers and email addresses, doing away with traditional account numbers.

The digital real will be produced by authorized entities and logged on a distributed ledger technology akin to blockchain. This will enable various operations, including the seamless purchase and sale of public treasury bonds, facilitated by the support of Web3 infrastructure for functions like token creation, burning, and registration.

Citizens will interact with the tokenized real, a representation of the digital real, exclusively through authorized financial institutions. This strategic approach aims to enhance Brazilians’ access to financial services, leading to simplified loans, more accessible investment opportunities, and streamlined insurance processes.

Fábio Araújo, the project coordinator, underscored the tangible impact DREX will have on the lives of ordinary Brazilians. It will empower them with expanded financial prospects and openings. The digital real is expected to deliver various financial products to the public, boosting banking services accessibility across Brazil.

As Brazil’s Central Bank introduces DREX as the official name for its digital real initiative, the country takes a momentous stride towards modernizing its financial landscape, with potential benefits for citizens and businesses alike. The implementation of the digital currency is anticipated to usher in a new era of financial inclusivity and operational efficiency within the nation.