In a significant development, Brazil’s central bank has unveiled its selection of 16 proposals to participate in the pilot phase of the Drex CBDC project. This notable roster of participants includes prominent names such as Nubank, Microsoft, Visa, and SETL.
Brazil has been diligently advancing its digital real initiative over the course of several years, with a targeted launch set for 2024. Recent updates reveal that the central bank has christened the forthcoming digital currency as “Drex.”
Preparations are now in full swing for the inaugural pilot phase, which aims to evaluate the functionalities of privacy and programmability by enacting a specific use case. This use case involves testing a delivery versus payment (DvP) protocol for a federal government bond exchange among customers hailing from distinct institutions. Additionally, the comprehensive array of services integral to this transaction will also undergo scrutiny.
The central bank elucidates that this particular use case offers an ideal testing ground for privacy-focused assessments. By facilitating the exchange of information across diverse platform participants, the test also assesses the viability of the services offered and their seamless interoperability.
The green light has been given to a diverse array of proposals encompassing financial institutions, payment service providers, cooperatives, public banks, developers of crypto asset services, operators of financial market infrastructure, and facilitators of payment arrangements.
Noteworthy among the approved proposals is a collaborative effort involving Banco Bradesco, Nuclea—an interbank clearing house—and the blockchain-focused entity SETL. Additionally, Nubank has put forth a proposal, while Microsoft is notably engaged in three distinct endeavours. Visa, on the other hand, is partnering with XP to contribute to this pioneering initiative.