Chainlink, Microsoft, and Banco Inter are working together in the second phase of Brazil’s digital currency project, Drex. Together, they want to improve the country’s digital economy by using blockchain and decentralized finance ideas.
Chainlink, a leader in blockchain interoperability, is providing critical infrastructure for ensuring secure and reliable digital asset transactions.
Microsoft is leveraging its cloud computing services to enhance scalability and efficiency, while Banco Inter, one of Brazil’s prominent financial institutions, contributes its expertise in traditional banking to guide the integration of CBDC into the local economy.
The current phase of the Drex pilot focuses on testing advanced features like liquidity pools for government bonds and international trade finance. This builds on the foundational work of the first phase, which explored decentralization and privacy features.
The project also aims to tackle challenges such as programmability and regulatory compliance, ensuring the CBDC aligns with both national and global financial standards.
Roberto Campos Neto, president of Banco Central do Brasil, has highlighted the need for a multidimensional CBDC capable of bridging gaps in privacy, decentralization, and tokenization.
Drex aims to introduce innovations like tokenized financial services, fostering competition and expanding access to digital finance for businesses and individuals.
Banco Inter, represented by Bruno Grossi, Head of Emerging Technologies, views the second phase of the Drex CBDC project as a pivotal moment for Brazil’s economy. Grossi emphasized that collaboration with global leaders like Microsoft and Chainlink offers an opportunity to enhance the country’s financial market and reach a wider audience.
Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs, emphasized the importance of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) in facilitating secure transactions across borders, different currencies, and blockchain networks. She believes this technology will highlight the potential of tokenized assets to revolutionize trade finance in Brazil.
João Aragão, Microsoft’s innovation specialist for financial services, stated that Microsoft aims to provide technology to support Drex’s development. The goal is to make financial services more accessible and promote economic growth in Brazil.
Sergio Yamani, Chief Innovation and New Business Development Officer at 7COMm, expressed excitement about collaborating with all partners. He noted that blockchain interoperability and Central Bank Digital Currencies (CBDCs) could transform cross-border payments and trade finance, offering practical solutions for everyday business needs.
In early September, the Central Bank of Brazil selected Visa, Santander, to be part of its CBDC phase two. The pilot will examine the application of a Digital Real in improving secure and efficient financial dealings, specifically focusing on settling government bonds and facilitating large-scale transactions between banks and financial institutions.
Key aspects being evaluated include ensuring privacy, achieving instantaneous settlements, and introducing programmability, which allows the digital currency to be customized for designated purposes.
Unlike a digital currency aimed at everyday consumer use, the Drex Pilot targets interbank exchanges, revolutionizing the management of substantial payments by financial institutions.
The central bank revealed that the second testing stage will see the infrastructure built for the pilot used to trial the provision of financial services.
