As Brazil’s central bank gears up for the introduction of its digital currency, Drex, leading financial institutions like Itau Unibanco, BTG Pactual and Santander Brasil are escalating their efforts.
These major banks are increasing staff and investing in the technology infrastructure required for the nationwide implementation of Drex.
Central Bank President Roberto Campos Neto has long been an advocate for digital assets, even as some of his global counterparts have taken a more conservative stance.
Since his appointment in 2019, Campos Neto has maintained that blockchain technology is not just a passing trend but an innovation that can enhance the stability and efficiency of financial systems.
The central bank-regulated Drex platform will harness blockchain technology to establish a new ecosystem where various financial assets—ranging from equities to bonds—can be digitalized or “tokenized.”
This new platform will facilitate asset transfers via digital transactions. These transactions will be processed and verified within the Drex ecosystem by banks and other entities that receive the central bank’s authorization.
While the Drex system will not issue digital tokens directly, it will provide a platform where such digital assets can be created, as clarified by central bank officials.