Brazil postpones the launch of its digital real

He Central Bank of Brazil made the decision to adjust the schedule of its ambitious pilot project known as DREX, the official digital currency of the country. This measure includes the indefinite suspension of the innovation project LIFT Lab, generating uncertainty about possible implications in the development process of digital currency of the central bank (CBDCs).

The circumstances that have led to this decision are varied and complex. In large part, it is due to the gradual incorporation of the key participants in the project and the need to guarantee solid protection the privacy of users. He central bank you are not yet satisfied with the technology you plan to use for this purpose, which has added complications to the process.

Choosing the right technology to safeguard privacy has become a considerable challenge. Although the Central Bank has been in talks with various providers, up to now it has not found a level of technological maturity that you consider optimal for your needs.

Brazil CBDC: DREX

Aristides Cavalcante, who oversees cybersecurity and leads the technological innovation office, has been clear in his position on the matter: “We are not going to launch any solution without the necessary security.” This posture highlights the importance of ensuring the integrity of the projecteven if this means a delay in the schedule to allow for a rigorous testing and assurance process.

The official name of the digital currency of the Central Bank of Brazil is DREX, a name that symbolizes the future direction that the institution hopes to take with this innovative project. However, DREX has faced obstacles since its inceptionincluding a delay in the start of the 16 scheduled pilot projects, which were pushed back two months from July to May due to initial difficulties.

The vision behind DREX is based on the ability of entities authorized to issue the CBDC using distributed ledger technology, in essence, similar to the concept of blockchain. With the Web3 infrastructure at stake, it seeks to facilitate fast transactions for operations such as the purchase and sale of public treasury bonds, with token creation, registration and deletion processes supported by this technology.

Although the selection of technology that guarantees privacy has presented significant challenges, the Central Bank of Brazil continues its search for suppliers that can meet the technological maturity requirements. Safety remains a top priority, justifying the decision to delay testing and adjust the original timeline.

Thus, the deadline for completion of the first phase of the real digital pilotoriginally established for February 2024, has been extended until May 2024. This change reflects the commitment of the Central Bank of Brazil to quality and security in the development of its pioneering project in the world of digital currencies.