DREX (Digital Real)

DREX, Brazil's Digital Real eXperiment, is the nation's Central Bank Digital Currency issued by the Central Bank of Brazil and scheduled for full deployment in 2025, representing a blockchain-backed version of the Brazilian Real enabling smart-contract-based settlements, programmable tax compliance, and tokenized asset transactions.

DREX architecture emphasizes programmability for complex financial operations including atomic delivery-versus-payment for securities, automated tax collection at transaction level, integration with tokenized real-world assets like agricultural commodities and real estate, and interoperability with private stablecoins and banking infrastructure. The platform uses distributed ledger technology allowing multiple nodes operated by financial institutions while maintaining central bank oversight and monetary policy control.

Strategic objectives include modernizing Brazil's financial infrastructure to support digital economy, enabling instant settlement of securities and derivatives transactions, reducing informal economy through transparent digital payments, providing foundation for tokenized asset markets in commodities and real estate, and positioning Brazil as financial technology leader in Latin America. DREX underpins Brazil's digital finance infrastructure and enhances interoperability with BRICS cross-border payment systems aimed at reducing dependence on dollar-denominated correspondent banking. The Central Bank of Brazil conducted extensive pilot programs with financial institutions testing smart contract functionality, privacy-preserving technologies, and integration with existing payment systems. Full implementation addresses concerns about financial inclusion for rural populations, cybersecurity for distributed infrastructure, commercial bank disintermediation risks, and privacy balance between transparency and surveillance.