The Central Bank of Brazil has announced the selection of 13 innovative use cases for the second phase of its Drex central bank digital currency (CBDC) pilot, marking a significant step in its digital currency development. Out of 46 submissions from 16 consortiums, these cases were chosen to explore new functionalities that can streamline a variety of government and financial services, from real estate tokenization to car trading automation.
Selected Use Cases for Phase 2
Among the notable use cases are a real estate tokenization platform, a liquidity pool for public securities trading, and automation in car trading. Other platforms include solutions for international trade financing, credit allocation using collateral, and establishing a treasury liquidity pool. These initiatives aim to test the potential of Drex to modernize Brazil’s financial infrastructure.
The participating institutions in this phase include key players such as Mercado Bitcoin, Brazilian Stock Exchange B3, Santander, Tecban, XP-Visa, Banco do Brasil, Bradesco, Itau, Banco Inter, Nubank, and the Brazilian Banking Association.
Focus on Privacy and Security
A major focus of this phase will be ensuring the privacy of transactions on the Drex blockchain. Bruno Grossi, emerging technologies manager at Banco Inter, emphasized that in addition to functionality, all use cases must adhere to strict privacy regulations. “These use cases will also need to incorporate privacy solutions to safeguard the financial privacy of network users,” Grossi explained.
The inefficiency of the privacy measures in earlier phases was the primary reason for delaying the full-scale implementation of the Drex pilot until 2025. The Central Bank of Brazil stated that the previous solutions lacked the necessary maturity to comply with legal privacy protections, prompting this experimental phase.
Collaborative Testing
Grossi highlighted that collaboration will be key, as each use case will be open for testing by all participants in the pilot. This collective effort will help assess the feasibility and performance of the use cases in the Drex blockchain environment.
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