Brazil’s Drex testing extended to new second phase

Banco Central do Brasil has extended the Drex project timeline into 2025 because the technological solutions tested in the first phase “did not present the necessary maturity to guarantee compliance with all requirements legal issues related to the preservation of citizens’ privacy”. The BCB decided that it would be inappropriate to advance testing to a pilot phase (where real users are involved) until there is “certainty about the ability to meet privacy requirements”. The next phase will seek to incorporate new functionalities, such as the implementation of smart contracts within the platform, so that the private institutions participating in the project will be able to create services and business models on the network, without being limited to those designed by the BCB itself. [Read more at the BCB]

Drex will be a wholesale central bank digital currency (CBDC), transacted exclusively between the BCB and commercial banks banks to support the provision of retail financial services settled through tokenized bank deposits. [Read more at the Bank for International Settlements]

Upcoming Speaking Engagements:

• CBDC Conference, Istanbul, September 10-12. The conference will offer representatives of central banks, commercial banks, technology providers, policy makers and academics the perfect platform to learn about the latest CBDC developments, exchange ideas with experts and peers. [Find out more and register here][Central bank delegates may be eligible for free registration (email registration@cbdc-conference.com to find out more)]

• Digital Currency Conference, London, September 23-24. The conference will bring together policymakers, regulators, and technology and innovation experts to network and discuss all aspects of digital currencies. And enter the KiffmeisterDCC code at registration to get a 20% discount! [Find out more and register here]

And just a reminder that I produce a monthly digest of central bank digital currency (CBDC) developments exclusively for the official sector. So (only) if you work at a central bank, ministry of finance or international financial institution (e.g., the BIS, IMF, OECD, World Bank) and who would like to receive it by email on the first business day of every month, please DM me on LinkedIn or email me at john@kiffmeister.com.