The Central Bank of Brazil has issued a press release revealing details about “drex,” the Brazilian central bank digital currency (CBDC) formerly known as the digital real. The bank explained the need for a rebranding and detailed how it might revolutionize transactions with digital contracts for real estate and vehicles. Drex is expected to be launched next year.
Central Bank of Brazil Rebrands Digital Real to Drex
The Central Bank of Brazil has revealed the reasons behind the rebranding of the Brazilian central bank digital currency (CBDC), formerly known as the digital real, to drex. In a press release issued last week, the bank reported the new name was an acronym for “Digital Real Electronic,” with the X representing “modernity and connectivity.”
Maurício Moura, Deputy Governor for Institutional Relations, Citizenship, and Conduct Supervision (Direc) at the Central Bank of Brazil, detailed the vision behind drex and how it will affect the lives of Brazilians. He stated:
Drex will bring more speed, practicality, and lower cost to various contractual and financial transactions we make today.
The bank explained that this rebranding served to “standardize communication regarding the Brazilian CBDC by centralizing all communications on a single name,” avoiding using terms that are challenging to understand for most of the population.
Drex in Transactions and Possible Launch
Moura also referred to how drex will help citizens avoid the pitfalls of completing car or real estate transactions, as each party can be doubtful about making the first move. Moura hinted at integrating drex with state services that would allow the automation of these tasks with smart contracts.
On this possibility, he explained:
Due to Drex’s programmability, it doesn’t matter who makes the first move. Only when both conditions happen does Drex conclude the contract by simultaneously transferring money and ownership.
Drex is already in its test pilot stages, with the central bank having selected 16 different entities to be part of this test, to design applications that could be part of the final system. According to the state-owned Brazilian news agency Agencia Brasil, the digital real should be available to the Brazilian population at the end of 2024.
In December, Central Bank of Brazil President Roberto Campos Neto stated that drex, called the digital real at the time, could be launched at the end of 2024, explaining that there were many challenges in reaching that schedule.