Brazil’s central Bank, Banco Central do Brasil (BCB), announced on August 7, 2023, that their digital currency (CBDC) will now be called “Drex” instead of “Real Digital.”
According to the Central Bank’s official statement, the name “Drex” is an amalgamation of letters: the “d” and “r” is a nod to its previous name, Real Digital; the “e” signifies electronic; and the concluding “x” represents modernity and a connection with its line of solutions that uses Distributed Ledger Technology (DLT). Notably, the “x” also mirrors the final letter of “Pix,” the Bank’s instant transfer system introduced in 2020.
In addition to the name change, the Central Bank revealed a fresh brand identity for the CBDC. The brand identity features a dynamic interplay of two arrows within the “d” and a color transition from blue to light green. The Bank noted that the design aligns with the Bank’s modernization initiative, Agenda BC#, as the arrows symbolize the transformative journey from the conventional Real to the digitized realm.
Fabio Araujo, an economist and the lead of the Bank’s CBDC initiative, confirmed the name change during a live stream on YouTube.
The Brazilian Central Bank Digital Currency (CBDC) pilot project was initially announced in April 2022. The project was meant to develop and test a digital version of the Brazillian Real, which would be tied to the national fiat payment system and operate with a predetermined fixed supply and a limited amount available for minting, like Bitcoin.
The Central Bank claimed that the CBDC will provide Brazilians with a safe and regulated environment for new businesses and democratic access to digital economy benefits for citizens and entrepreneurs.
In May 2023, the Brazillian Central Bank announced its final selection of participants for the CBDC pilot program. Remarkably, 14 participants were chosen from a competitive pool of 36 bids, collectively representing over 100 institutions within individual companies and consortia.
The pilot program will begin in September 2023, and the participants will partake in simulated operations, evaluating the security and agility between the digital Real and tokenized deposits (real assets transformed into digital form) held by financial institutions.
The rechristened CBDC, “Drex,” is expected to become available to the broader Brazilian populace by the end of 2024.
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