The Central Bank of Brazil project (Bacen) for the creation of the Brazilian digital currency gained another chapter this Monday, August 7. During a live on YouTube, the municipality announced the name of the digital real: Drex, short for “real digital x”. The coin is expected to be available by the end of next year, 2024.
According to Bacen, Drex “provide a safe and regulated environment for generating new business“, says the municipality. In addition, the digital real project will guarantee more democratic access to citizens who will benefit from the digitalization of the economy, whether legal or natural persons.
Read more: Get to know the Central Bank's digital Real
Drex is the digital form of physical money, paper money. Access to it can be done through virtual bank portfolios or at other financial institutions. Bacen's intention is for the currency to become part of the population's daily life, so it will be possible to use the Drex value to pay slips, make transfers and withdrawals, transforming digital money into a physical asset.
But it is important to emphasize that the currency does not change the value of money stored in bank accounts or applications, for example.
What is the difference between Drex and cryptocurrency?
The main difference between the two models of money is that while digital currency is regulated by the central bank and operated by banking institutions authorized by the country's financial authority, cryptocurrency is a decentralized digital asset hosted on a network of blockchain public, that is, it can be accessed by anyone who wants to.
What do you think of the name and the ad? Are you anxious or worried about the upcoming launch of the Central Bank? Tell us in the comments!
Text proofread by: Pedro Bomfim (07/08/23)