INSUBCONTINENT EXCLUSIVE:
The Banco Central of Brazil has opened its doors for proposals in the second phase of Drex testing
Drex, the digital version of the Brazilian real, enters a crucial stage focused on smart contracts
Companies can submit their ideas from October 14 to November 29, 2024.The central bank welcomes financial institutions capable of testing
These tests will involve issuing, redeeming, and transferring assets
Participants must also simulate financial flows from trading events when applicable to the test case.Smart contracts, powered by blockchain
technology, automate contract terms and conditions
They streamline processes like money transfers, payments, and registrations
(Photo Internet reproduction)The potential applications of smart contracts are vast
They can simplify vehicle and property sales, as well as agribusiness asset negotiations
For example, a smart contract for a car sale would eliminate debates over payment and document transfer timing.Proposals for this phase
should not exceed five pages
Interested parties must email their ideas to piloto.drex@bcb.gov.br
Enters Second Phase: Focus on Smart ContractsThe central bank requires detailed business models in the proposals
These should outline expected positive impacts, privacy solution needs, and testing methodologies
Proposals should also address potential legal obstacles
There is no limit on selected proposals.The Drex project began in March 2023 with the selection of the Hyperledger Besu platform
This open-source platform reduces costs associated with technology licenses and royalties
It allows for controlled environment testing and ensures transaction privacy.In June 2023, the central bank chose 16 consortia for the pilot
These groups built systems compatible with Hyperledger Besu and developed financial products and technological solutions
The digital real was officially named Drex in August 2023.The first phase of testing started in September 2023
It involved simulated operations to test security, privacy, and agility
The testing evaluated various deposit types and operations with National Treasury securities.Originally, Drex was set to launch in late 2024
However, the project faced delays due to central bank staff strikes and privacy concerns
The second phase of testing, which began in July, will now include new participants.Testing with smart contracts will continue until the end
of the first half of 2025
This extended timeline allows for thorough evaluation and refinement of the digital currency system
