Brazil Central Bank Names Its Digital Currency 'DREX,' Scheduled For 2024 Launch (reuters.com) 14
Brazil's central bank has named its upcoming digital currency "DREX," which it aims to use to boost financial services. DREX is scheduled to launch next year. Reuters reports: The DREX will use distributed ledger technology (DLT) to settle wholesale interbank transactions, while retail access will be based on tokenized bank deposits. Officials from the central bank previously predicted that the adoption of the Brazilian digital currency would commence by the end of 2024, following the completion of its testing phase.
But Fabio Araujo, the coordinator of the initiative at the bank, said that employee strikes demanding better career advancement could potentially impact the project. During a live discussion organized by the central bank, he emphasized that the development of DREX is primarily aimed at improving access to financial services in the country. "By enabling simple and reliable access to registered values through DLT technology, we reduce costs and democratize access to financial services," Araujo stated.
He also highlighted that Brazilians are already engaging in extensive digital payments through the instant payment platform Pix, which was launched in late 2021 and has been widely embraced. Now, the expectation is that DREX will bolster lending, investments, and insurance services. "We aim to make these financial products accessible to the public and increase financial inclusion in Brazil," Araujo added.
But Fabio Araujo, the coordinator of the initiative at the bank, said that employee strikes demanding better career advancement could potentially impact the project. During a live discussion organized by the central bank, he emphasized that the development of DREX is primarily aimed at improving access to financial services in the country. "By enabling simple and reliable access to registered values through DLT technology, we reduce costs and democratize access to financial services," Araujo stated.
He also highlighted that Brazilians are already engaging in extensive digital payments through the instant payment platform Pix, which was launched in late 2021 and has been widely embraced. Now, the expectation is that DREX will bolster lending, investments, and insurance services. "We aim to make these financial products accessible to the public and increase financial inclusion in Brazil," Araujo added.
Re:What a bunch of drek! (Score:5, Insightful)
Brazilian here. It sounds horrible.
Re: What a bunch of drek! (Score:2)
Can you elaborate? I'm Brazilian too and I am an a bit suspicious, but that is mostly because of political bias.
Re: What a bunch of drek! (Score:2)
You're pretty close. The correct pronunciation of Drax, as in Drax the Destroyer, sounds like "drex" for Brazilians with untrained ears.
Will be interesting to see if it's based on XLM (Score:3)
It was announced that the central bank was exploring using XLM as the blockchain powering this. If that's the case, it could be a very good thing for Brazil compared to the rumors about FedCoin for the US since XLM is an open source ledger. [cointelegraph.com]
And before the usual morons come in with their usual nonsene about crypto mining, energy inefficiency, gas fees, etc. Please, look up the stats for XLM before you act like gibbering, shit-flinging monkeys. None of those things that applied to Bitcoin a decade ago apply at all to XLM. It's cheaper to move assets on it than with ACH in most cases, let alone credit cards.
DREX is Misspelled (Score:3)
Dreck -
1. Worthless, distasteful or nonsensical material
2. Rubbish, trash
3. Trash, junk, worthless material, crap
Have at it, kiddies!
Basketcase (Score:2)
It's as if you can achieve all those things WITHOUT cryptocurrencies. If your fucking banks just spent the money and did the work of improving their systems.
Re: (Score:1)
I don't know where you are from, but I'm sure you would be amazed at how the Brazilian banking system is well advanced. Also, we're not really "shifting" to crypto. Maybe in some more distant future, but right now Drex (ugh!) is being created specifically to handle digital contracts and inter-banking payments.
Re: (Score:2)
If you need blockchain nonsense to handle inter-banking payments, then it's not advanced.
Re: (Score:2)
It seems like the only countries that want to shift to cryptocurrencies are those where the electronic banking system is complete shite.
It's as if you can achieve all those things WITHOUT cryptocurrencies. If your fucking banks just spent the money and did the work of improving their systems.
Welcome to the third world. Things that seem incredibly simple to us in the developed world, such as providing a system to facilitate interbank payments with no cost to the user are incredibly difficult due to corruption and greed. The banks don't want to give people easy access to services that they can charge for or make difficult to make more profit and the politicians don't want to stop taking money from the banks.
Good thing I can't think of a developed nation which doesn't have such a system, same a
Mixed feelings (Score:2)
At first, it doesn't looks good. We already have Pix, a very convenient way to do payments. Looks like this DREX (what a horrible name) thing is a solution in search of a problem that was already solved. And oh so crypto! Such technology!
But that was a bit the same feeling with Pix, everyone here in Brazil thought it'd be a disaster, but instead it turned out to be a big hit. Brazil Central Bank got some credit (pun unintended) with us Brazilians, specially in resisting to bow to current government populist