The Central Bank of Brazil has unveiled a new set of use cases that will be part of the ongoing pilot for its central bank digital currency (CBDC), Drex. Among the 13 selected cases from the 46 presented are platforms for real estate tokenization, liquidity pools for public securities trading, and even automation of automobile transactions.
Central Bank of Brazil Announces 13 Approved Use Cases for Drex Pilot’s Second Phase
Brazil has chosen to use its Central Bank Digital Currency (CBDC) pilot as an opportunity to test various functionalities introduced to automate several government service processes. The Central Bank of Brazil recently announced the 13 new use cases that will be included in the second phase of its Drex CBDC proposal.
The institution selected 13 use cases from 46 submitted by 16 interested consortia. These platforms include different functionalities such as collateralized credit allocation, the establishment of liquidity pools for government bond trading, international trade financing, automobile transaction automation, and real estate platforms.
Companies participating in this new phase include Mercado Bitcoin, Brazil’s B3 stock exchange, Santander, Tecban, XP-Visa, Banco do Brasil, Bradesco, Itau, Banco Inter, Nubank, and the Brazilian Association of Banks, among others.
Bruno Grossi, Emerging Technologies Manager at Banco Inter, told Valor Econômico that, in addition to testing the viability of the approved use cases within the Drex blockchain environment, these must also meet privacy solutions that conceal transactions to preserve user banking secrecy on the network.
Grossi also stated that each use case will be made available for other participants to test its viability and performance on the Drex blockchain. “Each use case will be tested by everyone. Collaboration will always be welcome,” he explained.
The inefficiency of the presented private solutions was the main reason for the postponement of the Drex pilot phase completion until 2025 and the creation of this new experimental phase. In May, the central bank declared that the tested solutions lacked the “necessary maturity to ensure compliance with all requirements and legal issues related to the preservation of citizen privacy.”