Brazil is getting ready to launch its central bank digital currency (CBDC) as soon as 2024 with the intention to increase financial adoption and offer better services. The new CBDC will be called DREX and it is expected to change the way transactions are conducted while focusing on financial inclusion as well.
Brazil is Getting Ready to Launch a CBDC
The central bank of Brazil has announced that they are working on a CBDC that will be a digital representation of the Brazilian real (BRL). The largest country in Latin America is expected to launch the new CBDC as soon as 2024 and help the country move towards financial inclusion.
The new CBDC will focus on transforming the financial sector in the country. Thanks to the technology offered by this CBDC, it will be possible to increase financial inclusion, provide better financial services to people, and improve the accessibility of the general population to the mainstream financial system.
Over the last decade, multiple cryptocurrencies have been launched around the world, being Bitcoin (BTC) the most popular one. Other banks and companies have also launched virtual currencies. Central banks, instead, are working in the so-called Central Bank Digital Currencies. Nevertheless, there are no working CBDCs right now, as most of them are in the development phase. Compared to Bitcoin, CBDCs are centralized and aimed at controlling financial flows and population habits.
Several countries have also announced that they are working in order to test new solutions for their CBDCs. Countries like Russia, China, Canada and the UK are just some of the examples of countries that could be ready to launch a CBDC in the coming years.