We haven’t even gotten used to calling what will be Brazil’s official digital currency the digital real and we can now use the official name: DREX. The fiat token is already a reality.
At the end of August 2023, the first transaction was made between banks moving DREX balances as one of the major milestones in the project to create the Brazilian virtual currency.
It will represent an important advance for the Brazilian economy and the national monetary system, generating a series of important benefits that are now perceived by those who operate with tokens and cryptocurrencies.
For a greater understanding of this innovation and talking about digital currencies such as bitcoin and ether, it is important to differentiate them from DREX, as they are categories of digital assets with different operating characteristics and objectives.
But what is the digital real now called DREX in practice?
For which applications will it bring major transformations?
BLOCKBR, a company that develops tokenization infrastructure, will talk about this major monetary change underway and how DREX will affect our lives!
WHAT IS DREX
DREX is the Brazilian digital fiat currency, that is, the country’s monetary unit in the format of tokens – encrypted files that represent the value defined by whoever issues them – in this case, the Central Bank.
Our national digital currency is among a series of country projects to create CBDC (central bank digital currency). There are already around 20 pilot projects – in addition to Brazil, Japan, England and China are studying the implementation of fiat tokens.
WHAT IS THE DIFFERENCE BETWEEN DREX AND BUSINESS TOKENS?
Business tokens are already widely used through the tokenization of assets in various markets, from the tokenization of gold, to government roles such as tokenized court orders.
They are cryptoactives used to transact goods and rights, therefore they are not the currency itself but the offering vehicle. The digital real can even be used to acquire business tokens.
IS THERE A DIFFERENCE BETWEEN DREX AND CRYPTOCURRENCIES?
Yup.
Although DREX and cryptocurrencies are monetary tokens – used to pay for goods and services – and blockchain technology products, there is an important conceptual difference.
Virtual currencies have become, over the years, a high-risk investment, with intrinsic appreciation and which fluctuates according to the mood of the markets and speculative bubbles. Therefore, cryptocurrency scandals like the FTX case are not rare.
On the other hand, DREX will be digital money in a virtual wallet with the same purchasing power as paper money in a physical wallet, without any relationship with the investment market.
Understanding this difference is essential to know where each cryptoactive should (or can) be used.
FIRST REAL DIGITAL TRANSACTION
Between August 30 and 31, 2023, the first DREX movement was made in the Brazilian financial system, between Banco do Brasil and Caixa Econômica and processed in the Central Bank’s sandbox, the institution’s development environment, with values transferred between two banks.
This operation was surrounded by a lot of expectations, less for the success that was already expected and more for the accomplishment itself, as it represents a fundamental seal for the continuity of the digital real project and for the development of tokenization in the country.
DREX is in the testing phase and implementation is scheduled for the end of 2024.
Do you know what tokenization infrastructure is and how it is fundamental for business with transactional tokens? Discover BLOCKCBR’s differences!
WHAT IS THE IMPACT OF DREX ON ASSET TOKENIZATION?
The creation of DREX increases the credibility of trading tokens.
Even considering that the tokenized real will be issued on a private blockchain, which does not need to be a rule in the tokenization market, the principles of security and transparency are excellent in both environments.
Furthermore, the market can count on the growth of tokenization companies, especially those that offer high-quality tokenization infrastructure such as BLOCKBR.
The popularization of the token as a currency in the daily lives of Brazilians will help expand the concept of tokenomics and consolidate the role of smart contracts in improving the business management of private and public companies.
WHAT ARE THE MARKET POSSIBILITIES WITH DREX
HIGHER PROFITS
This is a strong market expectation when we talk about increasing the efficiency of institutions and reducing operational and issuance costs of financial products that today are strongly linked to maintaining the routines of the traditional banking system.
One of the strongest reductions will be the issuance of paper money, impacting a chain of related expenses – circulation, transportation, storage, control and others.
DEMOCRATIZATION OF FINANCIAL SERVICES
DREX will be able to serve the number of unbanked people in the country by allowing the use of a simple technology that processes transactions without fees and intermediation, between the seller’s and buyer’s digital wallets, in addition to lower costs for contracting services and investing.
RECONCILIATION BETWEEN BANKS IN REAL TIME
With the immutability of data for each banking transaction carried out during the day and automation with smart contracts, reconciliation between banks will take place practically in real time, streamlining processes and increasing the availability of systems for customers.
TOTAL AVAILABILITY FOR INVESTMENTS AND OPERATIONS
DREX will allow customers to transact with systems running 24/7. Investments will be more agile and more attractive, as management will be available 24 hours a day.
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is becoming present in all segments and business models, it is not something so innovative that it should still be seen with suspicion. Companies and individuals are currently monetizing tokens.
Recent actions by BACEN and CVM signal that tokenization is legal and the digital real will be a great divisor to increase the credibility of technology for those who want to invest in digital assets.
Offering your business token is simpler than you might think. Do you want to see the competition come out ahead?
Come and talk to BLOCKBR.
We have the best token offering strategy on the market!
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying token is not complicated if you invest with someone who makes it easy! Just open an account with a qualified asset tokenization company and create a digital wallet to store your applications.
Access our token marketplace, learn about the most varied offers and choose the ones that align with your investor profile. And you can start investing in digital assets for as little as 50 reais!
Open your account with BLOCKBR and earn more with your investments!
BLOCKBR Digital Assets is a fintech specialized in tokenization of assets and investments that delivers infrastructure to the regulated and non-regulated market through an All-In-One platform that offers the transformation and interoperability between assets and investors.
For more information, visit: http://www.blockbr.com.br or @blockbr_ on social networks