Central Bank of Brazil Discloses 13 Use Cases Approved for Drex Pilot’s Second Phase
Brazil has decided to make its central bank digital currency (CBDC) pilot an opportunity to test different functionalities introduced to automatize several government service processes. The Central Bank of Brazil recently announced the new 13 use cases that will be included in the second phase of its proposed drex CBDC.
The institution selected 13 use cases from 46 presented by 16 consortiums interested in testing these platforms in this new phase. The platforms include different functionalities, like assigning credits with collateralization, establishing liquidity pools for trading government bonds, financing international trade operations, automatizing of car transactions, and real estate platforms.
Among the companies part of this new phase are Mercado Bitcoin, Brazil’s stock exchange B3, Santander, Tecban, XP-Visa, Banco do Brazil, Bradesco, Itau, Banco Inter, Nubank, and Brazilian Association of Banks, among others.
Bruno Grossi, manager of emerging technologies at Banco Inter, told Valor Economico that besides testing the feasibility of the approved use cases as part of the drex blockchain environment, these must also comply with the privacy solutions that hide the transactions to preserve the banking secret of users in the network.
Grossi also stated each one of the use cases will be liberated so other participants can test their feasibility and performance on Drex’s blockchain. ‘Each of the use cases will be tested by everyone. Collaboration will always be welcome,” he explained.
The inefficiency of the presented private solutions was the main reason for the postponement of the completion of the pilot phase of drex until 2025, and the creation of this new experimental phase. In May, the central bank stated that the solutions trialed lacked the “necessary maturity to guarantee compliance with all requirements and legal issues related to the preservation of citizens’ privacy.”
To follow all the latest developments in crypto and the economy in Latin America, sign up for our Latam Insights newsletter below.
What do you think about the use cases approved to be part of the second phase of the drex CBDC pilot? Tell us in the comments section below.
