Drex: Central Bank defines the name of the country’s new digital currency

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Value will be equivalent to paper money, operation will be carried out through virtual wallets and there will be no automatic correction. The expectation is that, by the end of 2024, Drex will be released to the public. Marcello Casal/Agência Brasil The Central Bank defined the name of the country’s first official digital currency: Drex. Pix’s cousin’s name, as he is called within the institution, is an abbreviation of the real digital expression x. The expectation is that, by the end of 2024, Drex will be released to the public. According to the BC, the digital currency can be exchanged for paper money and vice versa, and access to it will be done through virtual wallets in banks and other financial institutions. Drex will not be automatically remunerated – similar to what happens with money kept at home, for example. The BC hopes that the new currency will help lower the cost of banking operations and increase the inclusion of consumers in the new financial market. “The digital real is an expression of the Brazilian sovereign currency, which is being developed to support a safe environment where entrepreneurs can innovate and where consumers can have access to the technological advantages brought by these new tools, without having to expose themselves to it. to an unregulated financial environment”, says the BC, in a note. Difference between Drex and cryptocurrencies Cryptocurrencies work like stocks on the Stock Exchange, where investors put money in search of profitability. Drex, on the other hand, will not have a price variation, as it will only be a virtual representation of the physical Brazilian currency. In addition, cryptos vary in price depending on supply and demand. For example, the value of bitcoin, one of the most popular virtual currencies, has dropped by almost 4% in the last 30 days. The price of the real, on the other hand, does not change – that is, R$ 5 in paper money will be equivalent to 5 drex. It is worth mentioning that, according to the Central Bank, the digital real will work on blockchain, a system used by cryptocurrencies. And, above all, it is not a cryptocurrency, because it will be guaranteed by the government.

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