Drex: Brazilian government digital currency

Drex: Brazilian government digital currency

Internal tests to implement drexThe Brazilian cryptocurrency is 100% progressing, and final details are expected to be finalized throughout this year so that external testing can begin during the same period (2024).

However, the Central Bank has not yet set a final launch date, however, it is expected that at the beginning of 2026, ordinary citizens will have access. In August 2023, the municipality revealed more details about the plans for the asset, which is nothing more than an extension of the physical riyal.

“There can't be a different quote. Drex is the real thing, just on a different platform. So, if you transfer from the Drex platform to your bank account, or you withdraw from the cashier, the one Drex you withdraw, you will withdraw 1 R$, because One drex equals 1 Brazilian real,” explained British Columbia economist Fabio Araujo, who is coordinating the initiative. “If Drex is very successful, it means a lot of transactions will be done on this new platform. If it's not very successful, it means people think it's better to use the technology we already have to run everyday things. But it's one-to-one.”

What are the uses of Drex, according to the Central Bank?

As we have already explained, there is still no specific date for the launch of Drex, but in general it is expected that the resource will be actively launched from 2026 onwards, after reaching a satisfactory degree of maturity in the various tests carried out. by central bank.

Therefore, when launched, its use will depend on the banking institution licensed by the municipality. Digital currency can also be exchanged for physical banknotes and vice versa. Hence, this tool promises to provide more flexibility and security for banking transactions and payments in general.

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For example, users will be able to pay for purchases in commercial establishments through this feature, in addition to what is already known pix. After that, it will also be possible to transfer the digital rial to third-party accounts, and the recipient can later withdraw these amounts in banknotes.

Another important point to mention is the potential usefulness of Drex in buying and selling cars and real estate. However, for this to be possible, it is necessary to make some amendments to Brazilian law, which currently does not allow this type of mechanism.

Moreover, it is estimated that in the future it will also be possible to pay social benefits such as Bolsa Família and Vale-Gás using the digital real. Finally, the authorities also estimate that its use will be able to hinder crimes such as money laundering and other illicit activities throughout the national territory.

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