Drex arrives to make life easier for Brazilians. With a new logo, the Brazilian digital currency project (CBDC), created and operated by Banco Central do Brasil (BCB), has been renamed „Drex”. „Previously referred to as Real Digital, it will provide a secure and regulated environment for developing new businesses and more democratic access to the benefits of the economy’s digitalization, both for individuals and entrepreneurs.” according to the press release.
The logo, developed by the BCB, is a combination of letters that forms a word with a strong and modern sound: „d” and „r” allude to the Real Digital; „e” stands for electronic, and „x” conveys the idea of modernity and connection, as well as the Distributed Ledger Technology (DLT) that underpins Drex.
Drex’s visual concept fits into the context of the modernization agenda carried out by the BCB (Agenda BC#) and uses graphic and typographical elements that refer to the digital universe.
Alluding to a transaction, the two arrows in the letter „d” represent the evolution of the Real from a physical to a digital environment. They reinforce the idea of agility. The use of colors changing from blue to light green intends to convey the idea of a “completed transaction”.
BCB clarifies doubts about Drex
What is Drex and how will it impact the daily lives of Brazilians?
Drex is a new representation of the Brazilian Digital Real, the everyday currency in Brazil. This new representation relies on a platform with technologies that allow the provision of financial services efficiently and democratically. Drex has great potential to affect the daily lives of Brazilians positively.
In the same way that Pix – the Brazilian instant payment ecosystem – has democratized access to payment services, Drex arrives to democratize access to financial services, such as credit, investment and insurance.
„Drex will bring more speed, practicality, and lower cost to various contractual and financial transactions we make today”, explains Maurício Moura, Deputy Governor for Institutional Relations, Citizenship, and Conduct Supervision (Direc) at the BCB.
How will a transaction with Drex work?
„In the purchase and sale of a car,” exemplifies Maurício, „the seller often fears transferring the ownership of the vehicle without receiving the money first, whereas the buyer often fears paying before ownership is transferred. „
„Due to Drex’s programmability, it doesn’t matter who makes the first move. Only when both conditions happen does Drex conclude the contract by simultaneously transferring money and ownership. If one of the parties fails, the car and the amount paid are returned to their respective owners.”, he explains.
Drex can also be used in the purchase of real estate. In the future, even social benefits may be paid with Drex.
What are smart contracts and how will Drex enable them?
Distributed ledger technologies (DLT), like blockchain, allow the automation of financial transactions using smart contracts, which are programs that run securely on DLT networks. In the current testing phase, Drex is being developed on Hyperledger Besu, a DLT incorporating smart contracts. Thus, programmability through smart contracts is a key part of Drex’s platform.
Why did the BCB wait to unveil the new name and did not announce it with the RD Pilot, launched earlier?
As has happened in most countries, since the beginning of the discussions regarding the Brazilian central bank digital currency, now rebranded Drex, the BCB’s Board of Governors considered giving it a specific name to simplify communication. The process of developing the Drex name started in 2022 when the main aspects of the Brazilian CBDC model had already become clearer.
The purpose was to standardize communication regarding the Brazilian CBDC by centralizing all communications on a single name. This standardization should avoid using technical terms – such as “Digital Brazilian Real”, “tokenized Brazilian Real”, smart settlements or smart contracts – commonly used among Drex’s project participants but challenging to understand for most of the population.
Was there always an intention to name the Brazilian CBDC project? Did it take Pix as an example?
The ideation process of the Drex logo resembles that used for Pix. According to deputy governor Maurício, a well-designed logo „leads to recognition and familiarity with the product.”
Developed by the BCB, Drex’s logo is a combination of letters that forms a word with a strong and modern sound: „d” and „r” allude to the Digital Brazilian Real; „e” stands for electronic, and „x” conveys the idea of modernity and connection, as well as refers to the Distributed Ledger Technology (DLT) that underpins the Drex project.
Drex’s visual concept fits into the context of the modernization agenda carried out by the BCB (Agenda BC#) and uses graphic and typographical elements that refer to the digital universe.
Alluding to a transaction, the two arrows in the letter „d” represent the evolution of the Brazilian Real from a physical to a digital environment. They reinforce the idea of agility. The use of colors changing from blue to light green intends to convey the idea of a “completed transaction”.
Should Drex become popularized like Pix, for example?
Pix case is an undisputed success and hard to match, but the BCB aims to use the lessons learned from Pix to make Drex a top-rated platform that can be part of people’s everyday lives. „Since its launch, Pix was soon incorporated as a common word in everyday life. Today, we all talk about ‘making a Pix’. Soon, we will also say ‘using Drex’, predicts the deputy governor.
Will Drex cost anything for the user? If so, how will this charge be made?
Any cost associated with Drex will be related to the financial service the offering institution provides. It will be up to the institution to define the final price for the service offered, in line with regulations, and considering the competitive environment. It may even be free or significantly lower than the price of a similar service before the adoption of Drex.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
