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Banco Central do Brasil (BCB) will evaluate decentralized finance (DeFi) components to enhance the adoption of tokenization by domestic banks as part of the Drex pilot project, a central bank digital currency (CBDC).
Roberto Campos Neto, the President of Banco Central do Brasil, stated that the CBDC pilot will feature a multidimensional framework to tackle the “trilemma” of traditional finance (TradFi) — limited decentralization, privacy, and programmability. Neto mentioned that BCB will carry out a series of experiments utilizing Drex within the DeFi landscape, encouraging local commercial banks to adopt asset tokenization.
In particular, BCB’s pilot will assess aspects of CBDC decentralization by initiating digital asset transactions within liquidity pools for government securities and international trade finance.
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The Drex pilot will also emphasize compatibility with the DeFi ecosystem, with elements being integrated into the local banking industry. BCB seeks to expand the potential of DeFi by merging it into the regulated environment and tailoring it to the requirements of the financial system.
According to the president of Banco Central do Brasil, prioritizing the implementation of tokenization in the operations of local TradFi institutions is essential, thus linking the development of Drex closely to this goal. BCB is actively testing the technology in partnership with Open Finance. Neto highlighted that this strategy will foster increased competition within the financial services sector.
The pilot initiative for the Brazilian CBDC commenced in 2022. In 2023, the digital national currency was officially designated as Drex. In 2024, Banco Central do Brasil initiated the second phase, where large enterprises, consortiums, and local FinTech companies will explore the financial functionalities of CBDCs.
Сообщение Brazil to Test CBDC Compatibility with DeFi появились сначала на CoinsPaid Media.
