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The central bank's headquarters in Brasilia, Brazil, August 25 2021. Picture: AMANDA PEROBELLI/REUTERS
The central bank's headquarters in Brasilia, Brazil, August 25 2021. Picture: AMANDA PEROBELLI/REUTERS

Brasilia — Brazil’s central bank forthcoming digital currency, set to launch in 2024, will be named Drex, it announced on Monday, aiming to use the currency to boost financial services.

The Dres will use distributed ledger technology (DLT) to settle wholesale interbank transactions, while retail access will be based on tokenised bank deposits.

Officials from the central bank previously predicted that the adoption of the Brazilian digital currency would commence by the end of 2024, following the completion of its testing phase.

But Fabio Araujo, the co-ordinator of the initiative at the bank, said that employee strikes demanding better career advancement could potentially impact the project.

During a live discussion organised by the central bank, he emphasised that the development of Drex is primarily aimed at improving access to financial services in the country.

“By enabling simple and reliable access to registered values through DLT technology, we reduce costs and democratise access to financial services,” Araujo stated.

He also highlighted that Brazilians are already engaging in extensive digital payments through the instant payment platform Pix, which was launched in late 2021 and has been widely embraced.

The expectation is that Drex will bolster lending, investments, and insurance services. “We aim to make these financial products accessible to the public and increase financial inclusion in Brazil,” Araujo said.

Reuters

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