Parfin Unveils Rayls to Enhance Privacy in Brazil’s CBDC Drex

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Parfin, a financial technology firm, has developed Rayls, a new blockchain system designed to bolster privacy for Brazil’s central bank digital currency (CBDC), drex. Rayls operates in a permissioned mode, requiring Know Your Customer (KYC) compliance for all accounts, while also integrating with public blockchains via Rayls Public Chain, an Ethereum layer two (L2) solution. This dual functionality aims to bridge regulated entities with decentralised finance. Rayls will undergo testing alongside Microsoft’s ZKP Nova to ensure privacy for drex users, replacing Parfin’s earlier Parchain system.

Parfin co-founder Alex Buelau highlighted the existing divide between traditional finance and decentralised finance (DeFi). Rayls seeks to overcome this barrier by enabling collaboration between traditional and blockchain-based financial solutions.

The Central Bank of Brazil had previously delayed drex’s pilot to 2025, citing insufficient maturity in privacy solutions proposed by third parties to meet legal and privacy requirements. With Rayls, Parfin addresses these concerns, offering a promising approach to meeting the stringent privacy and regulatory standards necessary for drex’s implementation.

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