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Homepage > News > Finance > Brazil explores tokenization, DeFi with Drex CBDC Brazil is exploring expanding its central bank digital currency (CBDC) to encompass decentralized finance (DeFi) and tokenization, the country’s central bank has revealed. Elsewhere, Visa (NASDAQ: V) is stepping up its tokenization efforts, recently launching a platform for tokenizing assets such as stablecoins and deposits, with Spanish giant BBVA as its first client. A robust CBDC: Brazil’s unique approach with Drex Brazil was not among the first nations to launch CBDC trials, but since its first pilot last year, it has progressed aggressively. Most recently, the governor of the Banco Central do Brasil revealed that it’s exploring tokenization, programmability and DeFi with the Drex CBDC. Roberto Campos Neto spoke to Princeton University’s Professor Markus Brunnermeier in an interview that delved into the future of financial intermediation. According to Neto, the central bank has been striving to offer Brazilians cutting-edge financial and payment solutions while balancing other responsibilities, such as maintaining economic stability. Brazil’s central bank has an integrated agenda with four fundamental blocks: Pix, Drex CBDC, open finance and currency internationalization. Under Drex, the bank was intent on preventing commercial bank disintermediation by ensuring Drex didn’t change the balance sheet of the central bank. This birthed tokenized deposits, which benefit from the speed, access and low cost of CBDCs without the complexity of changing an entire system. In time, Drex has evolved to better compete with existing payment methods, with the biggest rival being Pix, the ultra-successful national digital payments framework. Since its launch in November 2020, Pix has facilitated 67 billion transactions for 158 million users. One of the unique features that Drex will offer is access to DeFi. However, unlike the DeFi that has dominated the ‘crypto’ world, which is led by the hunt for…

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Filed under: News - @ October 9, 2024 10:24 am