Drex: Digital Brazilian Real will be launched in 2024

Digital currency should reduce transaction costs, bringing benefits to consumers and businesses

On August 7, the Central Bank of Brazil (Bacen) announced the official name of the country's digital currency: Drex. Scheduled to be launched in 2024, the virtual counterpart of the Brazilian currency is the next step in the line of digital solutions that started with the instant payment platform - Pix.

In practice, the Drex will have parity with the Brazilian Real (BRL). In other words, 1 Drex will be equivalent to BRL 1.00.

Once fully implemented, the Drex digital currency is expected to significantly change sales transactions and the provision of financial services, reducing the intermediation chains in such operations.

"The solution, previously referred to as the ‘Digital Real’, will provide a safe and regulated environment for the creation of new businesses and a more democratic access to the benefits of the digitalization of the economy for citizens and entrepreneurs," the agency stated.

The Central Bank has been developing the necessary infrastructure to effectively implement the new currency. A pilot platform for Drex transactions is currently under testing stage, which is expected to last until the end of 2024.