With the launch of DREX, will paper money end? Government is ready!

Find out everything about DREX, the Brazilian digital currency that promises to revolutionize financial transactions. Get ready for the era of digital money in Brazil!

With the Central Bank (BC) moving forward with the implementation of the long-awaited Brazilian digital currency, known as Drex, a financial revolution is on the way.

In this article, we will explore all the details of this new form of money, its potential impact on the Brazilian economy, and the government’s preparation for this imminent change.

Discover the future of finance in Brazil with DREX, the upcoming digital currency. (Photo: Disclosure).

When will DREX be available?

The idea of ​​Drex, a digital version of the Brazilian real, gained momentum last year, when the BC detailed its plans for this innovation.

In essence, the Drex maintains the same value and acceptance as the traditional real, with its exchange rate in relation to other currencies always equivalent to that of the physical real, following a one-to-one ratio.

Initial testing, known as the Drex Pilot, began in March 2023, paving the way for a full-scale launch.

The expectation is that, by the beginning of 2025, Drex will be available to all Brazilian citizens.

Read more: Specific card can guarantee discounts of up to 70% in the largest pharmacies in Brazil: check!

Challenges and preparation

Fabio Araujo, BC economist responsible for the initiative, highlighted challenges related to data protection and compliance with the General Personal Data Protection Law (LGPD).

This raises questions about users’ security and privacy as Drex becomes an integral part of the country’s financial landscape.

Although the initial forecast is for Drex to be effectively operational from 2026, this date is subject to adjustments as the project matures and adapts to market needs.

What is the objective of DREX?

One of Drex’s promises is to offer greater speed, convenience and lower costs in financial transactions.

Users will be able to make payments in stores, transfer digital reais to other people and even use digital currency in real estate and automotive transactions, subject to adjustments in Brazilian legislation.

Drex can also play an important role in the payment of government social benefits, contributing to the reduction of illicit activities in the national financial system.

How will Drex work?

The digital currency will function as a virtual extension of physical banknotes, allowing payments, transfers and operations to be carried out through banking or financial institutions authorized by the Central Bank.

Furthermore, Pix-based operations will also be possible with this new currency. Although they share similarities, Drex and Pix perform different functions.

Pix is ​​aimed at instant transfers, while Drex represents a digital currency that can be used in various financial operations.

Will DREX replace physical cash?

It is important to highlight that Drex will not replace physical money (Real), but will function as an additional option to facilitate financial transactions.

In other words, it means that both currencies will have the same value, enabling conversion between virtual and physical money.

The creation of digital currency has the main objective of digitizing the Brazilian economy, reducing the costs associated with the production and maintenance of paper money.

Currently, only specific platforms and consortia determined by the Central Bank have the ability to use Drex, which is in the testing phase.

When released to the general public, the digital currency will be available to any user who has an account with financial or payment institutions authorized by the Central Bank.

The path towards the future

With digital currency in the implementation phase, the future of financial transactions in Brazil is becoming increasingly digital.

The promise of greater efficiency, security and convenience in financial transactions could mark a revolution in the Brazilian financial system.

As Drex prepares to become a reality for all Brazilians, the country’s economy is adapting to a new financial era.

More about DREX: Is Drex already IN CIRCULATION? How much does digital currency cost?

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