In a significant announcement, Brazil’s Central Bank has officially named its innovative digital currency ‘DREX.’ This naming took place during a live broadcast on the bank’s YouTube channel. Fábio Araújo, in charge of the digital real initiative, and Aristides Cavalcante, deputy head of technology, skillfully hosted the event.
Araújo said ‘DREX’ cleverly combines various aspects of the digital world, Brazil’s official currency, electronic advancements, and complex transactions. This name perfectly matches the success of the Pix platform, an inventive system in Brazil that smoothly enables fast, free electronic transfers using QR codes and easy-to-understand identifiers like phone numbers.
DREX Branding: Symbolizing Transformation and Success
The special branding of the CBDC, DREX, includes two arrows coming together at the ‘D,’ which tells the story of the currency changing from physical to digital. Also, the colors shift from blue to green, showing the completion of a successful transaction journey.
DREX works on distributed ledger technology (DLT). It’s made to do many things, like helping with buying and selling government bonds. This clever digital currency also uses web3 technology to do important tasks, such as creating, burning, and registering special digital tokens.
The creation of the CBDC is closely watched and only allowed by authorized groups. People will use a digital version of DREX, managed and given out by trusted financial institutions.
Expanding Horizons: DREX’s Positive Impact
Brazil’s main goal with DREX is to lower financial costs and make it easier for everyone to use money services. Leaders at the Central Bank are really positive about DREX. They strongly believe that it will greatly improve borrowing, investing, and insurance services. This lines up perfectly with Brazil’s determined effort to make sure more people can access financial services.
“We aim to make these financial products accessible to the public and increase financial inclusion in Brazil.”
In the beginning of July, the Central Bank tried out a new idea involving the digital real on GitHub. They invited people to take a look at how it works. Skilled developers looked closely and found some issues with the smart contract. This caused problems like freezing accounts, changing balances, and starting new digital money.
Even though people are worried about these abilities, some skilled developers think they could be useful in certain situations. For example, digital money could help keep track of taxes and let the public see how the government spends money. This would make things clearer when the laws are changed.
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