Brazilian Drex CBDC Drops Blockchain to Launch Next Year (Bitcoin.com)
Banco Central do Brasil (BCB) will reportedly launch its Drex central bank digital currency (CBDC) in 2026. Project lead Fabio Araujo said the rollout will come in two phases, with the initial phase dropping tokenization and the decentralized blockchain-based design it had piloted due to immature privacy solutions that failed to meet bank-grade confidentiality and verifiability standards. This shift means several programmable use cases tested in pilots won’t be available at launch, and there’s no guarantee Drex will continue using Hyperledger Besu, the Ethereum-compatible platform previously chosen. The first release will focus on a lien reconciliation solution to enable credit operations with various types of collateral, with details on supporting tools yet to be announced. Drex has been through several iterations, the first focusing on retail CBDC, the second on wholesale CBDC-backed tokenized deposits, and then this third iteration, which could be either retail or wholesale CBDC. [Read more at Bitcoin.com]
Pakistan’s CBDC Effort Gets Support from Japan (Nikkei Asia)
The State Bank of Pakistan (SBP) is reportedly partnering with Japan’s blockchain firm Soramitsu to pilot a central bank digital currency (CBDC) this year, with funding from Japan’s Ministry of Economy, Trade and Industry (METI) Global South program. Soramitsu, the developer of Cambodia’s Bakong central bank-backed interbank payment system, is also developing offline CBDC capabilities to enable smartphone transactions without internet access. Last month, SBP Governor Jameel Ahmad ihmad said Pakistan was “building up our capacity on the SBP digital currency” and hoped to roll out a pilot soon“. [Read more at Nikkei Asia]
Reserve Bank of Zimbabwe Launching a CBDC Survey (Bulawayo)
The Reserve Bank of Zimbabwe (RBZ) is reportedly again exploring the possibility of introducing a central bank digital currency (CBDC). The central bank is starting by conducting a CBDC consumer survey to solicit opinions on the design and nature of the CBDC and its overall acceptance by the public. In November 2021, the Cabinet mandated the RBZ to explore the feasibility of a CBDC. Since then, the RBZ has undertaken study tours to countries in the advanced stages of CBDC development, and has drawn up a roadmap for potential CBDC adoption in Zimbabwe. [Read more at Bulawayo]
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I produce a monthly digest of digital fiat currency (DFC) developments exclusively for the official sector (e.g., central banks, ministries of finance and international financial institution (e.g., the BIS, IMF, OECD, World Bank)) plus academics and firms that are active in the DFC space (commercial banks, technology providers, consultants, etc.). (DFCs include central bank digital currency (CBDC), stablecoins and tokenized deposits.) It goes out via email on the first business day of every month, and if you’re interested in being on the mailing list, please email me at john@kiffmeister.com.
