Brazil’s Central Bank Advances Drex Pilot with 13 New Themes for Smart Contract Testing

The Central Bank of Brazil (BC) announced on Wednesday a major step forward in the development of its digital currency platform, Drex, collaborating with the Securities and Exchange Commission (CVM).

This would mark the second phase of testing where around 13 themes were selected from 42 use case proposals submitted by various financial institutions. The second phase would also test the implementation of financial services using smart contracts created and managed by third parties on the Drex platform.

As per reports, the upcoming weeks will see the development of the selected themes.

“In a debate environment devoted to each of the themes where regulators and participants will be able to discuss the best implementation strategy, the governance of the new services and evaluate the interaction of the available privacy solutions with the implementation of the proposed theme,” the BC noted.

This phase talks about applying the platform’s infrastructure to real-world financial services. In this case, participants can implement smart contracts designed to streamline processes such as trade financing, credit collateralization, and asset transactions.

Regulators and developers are allowed to join hands, refine strategies, and ensure the solutions work within the privacy and security frameworks already in place.

As of this writing, 16 major consortia and companies, including prominent names like Banco do Brasil, Nubank, Itaú, Santander, Mastercard, and Google, are participating in the Drex Pilot. Their main task is to develop the infrastructure and resources needed for Drex’s operation. One of their main roles also includes testing smart contract implementations to working on specific financial themes, such as the assignment of receivables and credit transactions.

Santander, BTG, and B3 are working on transactions involving debentures, while ABBC and Inter focus on the assignment of receivables.

The most prominent themes of this phase are the optimization of foreign exchange markets, liquidity pools for trading public securities, and real estate transactions. Most of these are designed to streamline financial processes, reduce transaction costs, and increase the efficiency of financial markets.

The development of the 13 selected themes is likely to kickstart the coming week. The Central Bank looks forward to opening the platform ensuring that new participants take part and be hands-on with the use of smart contracts.

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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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