Brazil’s Central Bank Favours Developing CBDC
The Banco Central do Brasil (BCB) has announced that Drex, a central bank digital currency (CBDC) that will be used by Brazil’s central bank to pilot retail payments in stores, will be “a step forward in democratizing access for individuals and entrepreneurs to the benefits of the digitalization of the economy”.
BCB deputy governor Maurício Moura believes that Drex will improve speed, practicality, and lower cost in contractual and financial transactions. Drex’s programmability allows simultaneous transfer of money and ownership, avoiding the fear of seller and buyer transfers. The system also has potential use cases for property purchases and social benefit payments. BCB plans to test its CBDC for retail payments in stores in May.
(With inputs from Shikha Singh)
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