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The Central Bank of Brazil reveals the official brand name of the upcoming government-backed “digital real” – DREX.
What Does DREX Stand For?
On Monday, August 7, the Central Bank of Brazil broadcasted a live conversation on the topic “What will change for me with the Digital Real?” on the institution’s official YouTube account. Fábio Araújo, coordinator of the digital real, Aristides Cavalcante, deputy head of the Central Bank's technology and information department, and Gustavo Igreja, communications specialist at the Central Bank of Brazil, discussed the main features of the anticipated CBDC (central bank digital currency).
As it was revealed during the broadcast, the official name of the digital real will be the acronym “DREX”.
“DREX combines several elements of innovation: the D for digital, R for real, E for electronic, and X for transaction, taking a step further in this family of Pix that we created and was a success,” Araújo explained.
* Pix is the instant payment system developed by the Central Bank of Brazil and widely used across the country. Pix is a way to transfer money from one account to another instantly and free of charge by using a QR code or an ID such as phone number, email, or CPF (the taxpayer registry number) via any bank’s application.
The Meaning Behind DREX’ Logo
The official logo of DREX also represents the evolution of Brazil’s currency in the digital environment:
“Alluding to a transaction, the two arrows that lean into the 'D' relate to the evolution of the real to the digital environment, reinforcing the attribute of agility, and the use of colors, in a transition from blue to light green, conveys the message of 'transaction completed,'” the Central Bank of Brazil stated.
How Will the Digital Real Work?
The authorized entities will mint the digital real with the help of a similar-to-blockchain distributed ledger technology. DREX will support the trading of public treasury bonds, transactions backed by Web3 infrastructure for token burning, creation, and registration. Thus, the tokenized real will be the representation of the digital real and will be managed exclusively by authorized financial institutions.
The Central Bank of Brazil claimed that DREX will make the life of Brazilians easier.
“The solution, previously referred to as the Digital Real, will provide citizens and entrepreneurs with a safe and regulated environment for the creation of new businesses and a more democratic access to the benefits of the economic digitization”, highlighted the agency.
Apparently, the Brazilian CBDC project has been in works since at least the beginning of this year. The Central Bank of Brazil plans to start the digital real pilot testing in September 2023. However, DREX is expected to be widely available to the population no earlier than the end of 2024.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.