The Central Bank of Brazil has announced the official name for its digital currency - DREX.
The acronym DREX stands for the elements of innovation: D - digital, R - real, E - electronic and X related to transactions on the Brazilian Pix platform.
The Brazilian digital real will expand the population's access to banking services, and it will be easier for citizens to obtain a loan or insurance, and investments will be more accessible to them. DREX will also be used to trade government bonds.
Maria Rita Serrano, president of Brazil's largest state-owned bank, Caixa Econômica Federal, added that government and labor benefits could be paid in digital reals in the future.
In May 2023, global cryptocurrency and blockchain news media Coinidol.com reported that Visa had announced the development of a programmable financial platform for the digital real. At the time, the digital currency was scheduled to be launched by Brazil's central bank in 2024.
Catherine Gu, Global Head of CBDC at Visa, pointed out that the contribution of small businesses in Brazil is crucial and the solution can help. She added:
"The contribution of small businesses is critical to the local economy, especially in Brazil where they employ more than half of the population and generate nearly a third of the country's GDP - at Visa, we are committed to helping them grow by exploring new technologies that enable them to more easily sustain and expand their business operations."
In June, Brazil's central bank formed a consortium to test digital reality, including Mercado Bitcoin, MasterCard, Genial, Cerc and financial software developer Sinqia.