On Aug. 11, BRZ CB informed on new look and name for CBDC project
BRZ CB reported on that the new Central Bank Digital Currency (CBDC ) project, being created by the BRZ CB, is now called Drex (previously referred to as Real Digital).
Pr BRZ CB, Drex will provide entrepreneurs with a safe and regulated environment.
Drex Overview
Drex is official name of BRZ digital currency and used in all BRZ CB communications.
This new Drex is a new representation of the Real, the Brazilian everyday money.
This representation will be made on a platform utilizing technologies, which will allow for the provision of financial services in an efficient and democratic manner.
Drex is being developed to democratize access to financial services, such as credit, investment and insurance; and will bring more speed, practicality and lower costs.
Benefits of Drex
BRZ CB gave an example to illustrate a benefit that Drex will bring to public.
The purchase and sale of a car, which often involves fear of seller passing ownership without receiving the money first, and the buyer paying before having the property.
With Drex's programmability function, it doesn't matter who makes the first move.
The reason is that the contract will only be completed when both things happen.
Therefore, using Drex the money and property are transferred simultaneously.
If one of parties fails, the amount paid and the car return to their respective owners.
Smart Contracts
Distributed Ledger Technology (DLT) similar to blockchain allows automation of transactions using smart contracts (programs that run securely on DLT networks).
Drex testing phase is built on Hyperledger Besu, a DLT ncorporating smart contracts.
Thus, programmability through smart contracts is a fundamental part of the Drex.
Costs of Drex
Costs associated with Drex relate to financial service of the offering institution.
Therefore, it will be up to the institution to define the cost for the service offered.
It must follow regulations and consider the competitive environment, and it may even be free or significantly lower than cost of a similar service prior to adoption of Drex.
Sep. 11, 2023 BRZ Anbima Registers Bonds
On Sep. 11, 2023, BRZ Anbima SELIC reported the registration of Brazil's first tokenized public bonds, as part of Drex Pilot, the testing phase for digital currency.
First securities issued, transferred to portfolios of participating financial institutions.
SELIC will operate the recording of all trades in the government bonds; as part of the testing phase, two types, LTNs and LFTs were issued as fictitious securities to buy/sell.
Sep. 13, 2023 BRZ CB Drex Simulations
On Sep. 13, 2023, BRZ CB on the first 50 days of Drex testing and implementation.
Reports that 500 successful operations were conducted, 11 in-network institutions.
Drex Pilot program participants began integration into the platform at the end of Jul.
Various types of operations, both in wholesale and in retail, have been simulated.
1st issuance of federal public securities on Drex for simulation took place on Sep. 11.
Each participant received a share of the simulation version of the public securities.
Began simulated buying/selling of securities among themselves and simulated clients.
Oct. 2023 BRZ CB Drex Forum
On Oct. 5, 2023, BRZ CB announced a virtual event held on Sep. 27, 2023 between Bank representatives and Drex Forum to discuss progress made with the Drex pilot.
Discussed transaction maturities that have been tested, differences between services provided by Pix and Drex, the development of smart contracts, and privacy issues.
Drex forum coordinator and Deban head, Rogério Lucca highlighted the growing interest in digital currency in financial payment systems and by the regulators.
Fabio Araujo, Drex Initiatives coordinator, emphasized network security and privacy ahead of May and Jun. 2024 deadlines, privacy will be tested and evaluation of Pilot.
Drex 2023 Annual Meeting will take place in person, in Nov. 2023 with Central Bank President Roberto Campos Neto, and first phase of the Drex Pilot will end in Jun. 2024.
Jun. 6, 2024 BRZ CB Drex Platform Pilot
On Jun. 6, 2024, BRZ CB updated DP pilot, approved by Resolution 382, see #170957.
Changes enabled the incorporation of new assets and services into the pilot platform.
Asset-based businesses outside BRZ CB may be tested in cooperation with regulators.
During 2nd phase, BRZ CB will continue to prospect privacy solutions as part of scope.
BRZ CB, throughout third quarter of 2024, will make a public call for new participants.
Candidates must submit new use cases for own implementation of the smart contracts.
Those selected must develop their smart contracts by the end of the first half of 2025.
Sep. 23, 2024 BRZ CB Second Phase
On Sep. 23, 2024, BRZ CB reported the start of the second phase of the Drex Pilot.
Topics include receivables assignment; credit collateralized in CDB; credit collateralized in public securities; trade finance operations; optimization of foreign exchange market.
Also, liquidity pool for trading government bonds; transactions with Bank Credit Notes.
Debentures; transactions with agribusiness assets and decarbonization credits (CBIO).
Automobile and real estate transactions; transactions with assets on public networks.
In this second phase, the implementation of financial services will be tested, made available through smart contracts, created and managed by third parties in platform.
In 2024, BRZ CB will receive new applications from entities interested in participating.
Those selected must test the smart contracts used by the end of the first half of 2025.
Oct. 10, 2024 BRZ CB Second Phase Regulation
On Oct. 10, 2024, BRZ CB published Resolution 423 to amend the Regulation of the Executive Management Committee (CEG) of the Real Digital Platform Pilot Project.
Promoted a public call to receive new application proposals to participate in Drex Pilot.
Must involve business cases for their own implementation through smart contracts.
There is no initial limit on business cases that may be selected for testing in the pilot.
The proposed business cases must be described in accordance with the specifications.
During selection process, additional information may be requested by the Committee.
CEG will receive proposals from the interested entities between Oct. 14 and Nov. 29.
Resolution 423 comes into force on the date of its publication.
Oct. 18, 2024 BRZ CB Second Phase Applications
On Oct. 18, 2024, BRZ CB is accepting applications for new proposals for 2nd phase.
Those interested in participating should submit their proposals by email by Nov. 29.
Drex Pilot is a crucial stage that aims to test Brazilian digital currency operations.
Pilot phase aims to test use cases based on services created by platform participants.
The objective is to design the governance strategy for implemented smart contracts.
Proposals approved in this call will be added to the cases selected on Sep. 23, 2024.
Institutions operating in the financial market that necessarily have the capacity to test the proposed business model, when applicable to the case under test, may participate.
Proposed business must be described in a maximum of five pages, excluding the cover.
Projects must present a cover page, business case, among other listed requirements.
Other qualifications are detailed in Resolution 315, of Apr. 27, 2023, see #170957.
