Table of Contents 94e1i
With the announcement of a new BC digital currency, many believe that its emergence stimulates competition with the Pix, but what is the drex? The drex is the digital currency of Central Bank of Brazil, representing a digital extension of the real that can be exchanged through a digital platform. This project, known as a CBDC (Central Bank Digital Currency), aims to provide greater agility, practicality and cost reduction in financial and contractual transactions. O drex, whose name is an acronym for Digital, Real and Electronic, incorporates the modernity and connection represented by the “X”, being intended exclusively for the digital environment. 1t6f6j
How Drex works 2u355t
O drex represents the incursion of Central Bank of Brazil in the digital currency scenario. Functioning as a digital version of the physical ballots issued by the central bank, drex can be used for financial transactions, transfers and payments through a specific platform. Each unit of drex will have the equivalent value of R$1 real, but virtual currencies will be ed for separately, requiring a conversion called tokenization to represent their value.
Authorized financial institutions will be responsible for converting physical money into drex, using technology blockchain to ensure security, speed and transparency. O drex seeks to provide greater efficiency in banking operations, encourage financial inclusion and represent an evolution in the digitalization of the Brazilian economy.
With objectives that go beyond being a simple digital currency, the drex aims to integrate money and financial assets in one place, enabling innovations such as 24/7 transactions, investments in fractional assets and loans with “stamped digital money”. Furthermore, its future use internationally, without the need for conversion, aims to inhibit illicit practices such as money laundering.
O drex represents a Central Bank Digital Currency (CBDC), a category of digital currency issued and backed by a country's Central Bank. In the case of Brazil, the drex is the answer of central bank to increasing financial digitalization. A CBDC, like drex, differs from decentralized cryptocurrencies such as Bitcoin in that it is issued and regulated by the central monetary authority.
O central bank expects the drex be a catalyst for the modernization of the financial market, as well as the Pix went to payment methods in Brazil. To achieve this, the conversion process drex will be made directly from the deposit in virtual wallets, being necessary to deposit R$ 50 reais to obtain 50 drex, for example. This procedure may be carried out by various financial institutions authorized by the central bank, including large banks such as Bradesco, Nubank, Banco Inter, Santander, Itaú Unibanco, Caixa, XP, Among others.
Differences between Drex and Pix a1q6v
Unlike the Pix, which is an instant transaction system, the drex It is a currency intended for programmed financial services, allowing payments and various transactions. Therefore, the two will not compete for space, but will be useful in different aspects.
O Pix, consolidated as an instant transaction system, presents itself as the ideal choice for everyday payments, being efficient for paying bills, transfers and everyday purchases. On the other hand, the drex, characterized as the digital representation of the real, appears as an innovative virtual currency that uses blockchain technology, similar to that used in cryptocurrencies. This distinction is exemplified in practice: while the Pix is used to pay bills and make purchases, the drex finds its application in more complex operations, such as the execution of guarantees or the receipt of goods.
Despite already being considered a “cousin” of Pix, drex adopts a different approach, operating differently through DLT (blockchain) technology and presenting a broader concept. Not intended to replace the Pix, but complement the options available in the financial market, promoting innovation and diversification. Another relevant point of distinction between the two initiatives is the cost associated with use. While the Pix, in most cases, is free of cost for the end , the drex may involve fees, as it is always linked to a specific financial service.
When will the BC digital currency be launched 64r3p
The precise date of the launch of the drex, the Central Bank Digital Currency (CBDC) of Central Bank of Brazil, has not yet been defined. At the moment, the currency is in a testing and development phase. However, the projection is that the drex be made available to all Brazilians between the end of 2024 and the beginning of 2025.
During this testing period, selected financial institutions are actively participating, contributing to the validation and improvement of the underlying technology. O central bank see the drex as a step forward in the digitalization of the Brazilian economy, providing a regulated and safe environment, while seeking to encourage new businesses and democratize access to technological innovations.
See also:
Sources: BC, Reuters e CoinMarketCap
reviewed by Glaucon Vital in 25 / 1 / 24.
