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  • DREX promises to popularize RWA tokens in Brazil

DREX promises to popularize RWA tokens in Brazil

In what could be the biggest step towards a tokenized economy, Brazil will soon have its tokenized fiat currency, the DREX. In practice, we’re talking about tokens being used for the most diverse day-to-day transactions. But how can it benefit RWA tokens?

Also known as tokenized real – although there are plans for two types – it will be an important factor in reinforcing the dissemination and credibility of tokens in the market and generating greater dynamism in market and financial relations.

Tokenization is already a strong reality in the country, we are one of the leaders in the market and it would be no different among a series of projects in countries aiming for CBDC (central bank digital currency).

A demonstration of the strength that fiduciary tokens are expected to have in the coming decades is the creation of the digital euro coming off the drawing board, as well as the Guardian Project that brings together regulators from around the world around the potential of tokenized assets.

How can DREX boost real-world tokens?

BLOCKBR, a company that develops tokenization infrastructure, will talk about the relationship and importance of the tokenized real for the Brazilian economy of the future!

WHAT IS DREX AND WHAT ARE ITS MAIN CHARACTERISTICS

The DREX will be a new format of Brazilian money beyond paper money and will be used only in the digital world, in the form of a token – the digital asset already used around the world to transact real and financial assets, rights and business projects.

In monetary terms, the tokenized real will be the representation of value of the fiat currency. This way, 1 DREX will be worth R$1 and the monetary token will not be speculative.

We can already imagine how important this change will be in the day-to-day life of an economy already supported by banking technology and PIX.

WHAT ARE THE MAIN FEATURES OF DREX?

  • It will be a CBDC: central bank digital currency;
  • BACEN will be responsible for issuing DREX and custody;
  • It will operate at the same exchange rate as the original real against other currencies;
  • It is not a substitute for the original real; both can be used at the same time.

IS THERE MORE THAN ONE DREX?

In practice, yes, although the DREX categories are transparent to the consumer public, since they will only have access to one of them.

  • Real tokenized: this is the DREX intended for daily use in transactions between companies and clients and in investments;
  • Digital real: this is the DREX intended for reservation by authorized institutions and will not circulate on the consumer market.

HOW IMPORTANT IS DREX TO THE BRAZILIAN ECONOMY

The first and main benefit of DREX is to continuously reduce the emission of paper money as the tokenized real advances in use. For this reason, the initial focus of the audience is undoubtedly people who are digitally connected to consumption.

Other benefits also accrue from DREX’s entry into the economy.

  • Promote the financial inclusion of the unbanked population or those who receive inadequate service from the financial system;
  • Improving the efficiency of the retail payments sector;
  • Making it easier for Brazilians to access financial resources through technology;
  • Encourage more agile and profitable financial products for issuers and investors;
  • Increase the liquidity of investment assets with the possibility of investing and redeeming outside banking hours.

The expectation is that the qualitative leap in the financial system will be even greater than with PIX, as DREX will inherit a consumer public that is more immersed in the world of digital finance.

IMPACTS OF DREX ON FINANCIAL COOPERATIVES

Financial cooperatives participate as protagonists in the DREX Project through the Central Bank’s sandbox, the environment with blockchain technology created by the agency for projects with tokens to be studied and evaluated, generating a large validation panel.

The SFCoop consortium, formed by the main cooperatives to test DREX in the sandbox, evaluates the great potential that digital fiat currency has to transform the financial market through numerous use cases.

  • Creating portfolios of institutions and clients;
  • Currency for transactions between financial institutions;
  • Tokenization of assets and rights;
  • Facilitating the verification of borrower guarantees;
  • Simplify loan syndication.

Advancing processes with guarantees in DREX increases agility and reduces the operational cost of the transaction. Most importantly, cooperatives of all sizes have access to the same technology and can compete on equal terms.

RWA and DREX tokens - Blockbr
Image: Canva

RWA TOKENS: DEFINITION AND POTENTIAL

RWA tokensreal world assets tokens – are digital encrypted representations of real life assets which, when tokenized, can be traded through specialized platforms with blockchain and smart contracts.

The biggest examples of RWA are:

  • Real estate, vehicles, equipment and machinery;
  • Works of art and collectibles;
  • Financial assets;
  • Crops and livestock;
  • Public bonds (precatórios and others);
  • Private securities and receivables.

According to a Citibank report at the end of 2023, there is a forecast of around $20 trillion in RWA token movements in the world economy by 2030.

This impressive figure stems from the potential of blockchain technology to generate value and not just to traffic data or information.

Many assets lack tangible value and RWAs stand out in this respect, combining digital efficiency with real-world value attribution.

THE FUTURE OF RWA TOKENS IN BRAZIL

The implementation of DREX in Brazil’s economic reality will be a major boost for the credibility of transactional tokens and people’s trust in this business model.

Companies from all sectors and the government, represented by BACEN and CVM, are increasingly interested in creating tokenized chains that facilitate investments and trading, using a technological medium with high standards of security and transparency.

To give us an idea of the potential of tokenization, the Brazilian government is considering tokenizing the transfer of government funds, eliminating a series of intermediaries, bureaucracy and all human intervention in the chain.

Another highly bureaucratized sector that should benefit from tokenization is the real estate market. In a matter of hours, a purchase and sale with a deed and the tokenized registration of the property will be carried out in complete security and legal compliance.

TOKENIZE ASSETS WITH BLOCKBR AND BOOST YOUR RESULTS!

Tokenization is a reality in the market, with an increasing number of companies and people generating revenue with tokens. BACEN’s recent actions and the tokenized real are increasing the technology’s credibility.

For the success of your project, it is essential to have an adequate and efficient tokenization infrastructure for the financial and other markets, comprising:

  • Technical, fiscal and legal feasibility study;
  • Issuance of tokens and smart contracts with transparent governance;
  • Distribution of tokens on a simple and secure sales platform;
  • Efficient and assertive tokenization governance.

Discover BLOCKBR’s infrastructure work for regulated and unregulated markets through an All-In-One platform that offers interoperability between assets and investors.

You don’t want to see your competitor get ahead to make more money.

Or do you want to?

BLOCKBR is a fintech specialized in building infrastructure that allows a simplified migration to tokenization, meeting the needs of a highly regulated environment.

Our main mission is to develop autonomy for the capital market so that it can move, grow and potentially access digital assets. We develop legal and technological solutions that create opportunities and simplify the way in which financial services will operate, from the structuring and new roles of the agents involved to the management and supply of these assets, generating efficiency, lower costs and greater speed of liquidity.

We take care of the entire technological infrastructure for tokenization and regulation, simplifying your life so that you can take care of your customer relationship.

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