By the end of 2024, the Central Bank promises to launch a Brazilian version of CBDC
In recent years, many technological changes have taken place to improve online transactions and make life easier for Brazilians. The most recent was PIX, which revolutionized the way people pay for digital and physical purchases.
By the end of 2024, the Central Bank promises to launch a new form of online transaction: the DREX (Digital Real Electronic) a digital currency that is a continuation of virtual solutions. DREX is becoming a new form of online payment, being a Brazilian version of the so-called CBDC (Central Bank Digital Currencies). Other countries such as Sweden, China and South Korea already have a transaction system similar to DREX.
The expectation is that the digital currency will be used through financial operations that are already available, such as transfers, payments and loans, with the aim of simplifying transactions and reducing the costs involved in this process. It will be possible to use it in smart contracts and in high-value transactions, for example, purchases of vehicles, real estate and government bonds.
One of the distinguishing features of DREX is the ability to program the money transaction automatically once a certain condition has been met. DREX can be converted directly from money deposited in virtual wallets and will be carried out by fintech banks, cooperatives, brokers and other financial institutions authorized by the Central Bank.
Institutions that choose to make DREX available to their users will have to adopt a specific technology for transactions called Block Chain - which guarantees greater security, speed and transparency in the transmission of information.
Difference between DREX and PIX?
Despite some similarities, PIX and DREX are different. Basically, PIX is the payment method by which we transfer money and DREX is the money that will be transferred.
Source: Nuvem Shop
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