The DREX test phase will include 16 consortia that will build systems using blockchain technology, anticipating their launch to the public in 2024 or 2025.
"Ensuring greater security in financial transactions, increasing efficiency and, at the same time, reducing the costs of digital payment operations". In the midst of these expectations generated in the market, the Central Bank of Brazil began the simulated testing phase of DREX in September this year. In addition to the expected advances, experts who work in the segment believe that the Brazilian digital currency will also bring the possibility of curbing some transfer fraud and will even facilitate the creation of an international PIX.
The official name given to Real Digital was announced at the beginning of August and represented another important step in the implementation of the virtual version of the Brazilian currency. The test phase will see the participation of 16 consortia selected for the pilot project, tasked with building systems using blockchain technology. The offer to consumers, however, would only take place in late 2024 or early 2025.
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For Mariana Prado Lisboa, a lawyer specializing in regulation and payment methods and a partner at Barcellos Tucunduva (BTLAW), the idea is for DREX to transfer these financial assets immediately, with greater security in transactions. In her opinion, this will be possible because the digital version of the Real follows technological developments.
"To buy a particular tokenized good, the user will pay the amount using digital currency via the blockchain. Negotiations will be facilitated in totally digital and more secure environments. When buying a car, for example, the DREX will be instantly transferred to the seller and the vehicle document will reach the buyer duly digitized with less bureaucracy, in a safer way and at a lower cost", says the expert.
New business models
Mariana also points out that DREX will undoubtedly contribute to the emergence of new business models and technological innovations. In addition, according to the lawyer, the Central Bank expects a broad diversity in the supply of existing products capable of providing more precise guidance according to individual needs.
"This will be in line with the Open Finance vision, facilitating access to a range of additional services at more affordable prices. Users will be able to select from a variety of savings options and choose the ones that suit them best, thus surpassing the alternatives currently available in apps", he adds.
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Fraud mitigation
Marcelo Godke, a lawyer specializing in banking law and a professor at the FAAP and CEU Law Faculties, says that the arrival of DREX also brings the possibility of mitigating some frauds and undue transfers of funds. According to him, this will be possible because there will be a public registry based on blockchain technology.
"That is to say, it will have greater bringability, which brings more security. It will be easier to search for funds transferred indebtedly. In practice, it will be easier to locate this money", he explains.
Step towards an international PIX
Godke goes further and believes that the implementation of DREX via blockchain could facilitate the creation of an international PIX with the participation of other countries with electronic currencies. The viability of this mechanism is on the Central Bank's agenda, as part of its mission to facilitate financial transactions.
"The digital currency can be a facilitator in this implementation because the technology used is suitable for involving exchange operations between countries," says Godke.
Differences with PIX
Regarding the PIX, the two experts are unanimous in stating that the DREX has significant differences from the instant transfer system created in 2020, also by the Central Bank.
Mariana explains that the first is essentially a payment gateway defined by the monetary authority that can enable virtual transactions.
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"While PIX is a structure that improves the electronic transfer of values, DREX is the digitalized currency itself, a significant evolution of the conventional real and operates as a digital form of currency that can be used for a variety of financial services, not just limited to transfers," he says.
Although it is already a completely digital transaction, the PIX is based solely on accounting documents, adds Godke.
"In practice, the system credits one account and debits another. DREX will be based on the transfer with public registration, according to what is foreseen in the chain of blocks with greater traceability", he concludes.
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Source: CoinTelegraph