Brazil delays pilot of its CBDC until 2025

Due to setbacks regarding privacy solutions, Brazil has postponed the pilot of its CBDC drex to 2025

The pilot of Brazil’s central bank currency, or CBDC, known as Drex, was postponed until the end of 2025 because the government estimates that privacy solutions are still inefficient.

The announcement was made by the Central Bank of Brazil, considering the proposals made so far as lacking the necessary maturity, in addition to involving problems with user privacy. By the end of 2025, the pilot will be resumed, which will also feature the “implementation of smart contracts to promote use cases proposed by private parties.”

According to the Brazilian regulator, “a new phase of the pilot, which will begin in July and end in 2025, will allow the implementation of new functionality, including smart contracts, by third parties.”

This seeks to extend the reach of the initiative, and involve private entities in the launch of new CBDC projects that for now are outside the scope of what the central bank originally designed for Drex.

Regarding the Drex CBDC, it is known that its design has been conceived “to be part of a blockchain system supported by Hyperledger Besu, which complicates the compliance of standard transactions with the country’s banking and tax secrecy regulations.”


Source: news.bitcoin

(Reference image source: Jason Briscoe in Unsplash)

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