The Brazilian financial system is about to undergo a new revolution. After the success of Pix, the Central Bank is preparing to launch Drex — the digital version of the real, which is expected to reach the public between late 2025 and early 2026. But after all, what is Drex, how does it work, and what changes for the average citizen?
More than just a simple digital currency, Drex promises to transform the way we interact with money, focusing on security, inclusion, and innovation. Let's understand what is coming.
And it is he, Drex, the main subject of this article.
What is Drex?
Drex stands for "Digital Real x," where "x" represents the connection with technology, innovation, and modernity. It will be the digital version of the real issued and guaranteed by the Central Bank, within the category called CBDC (Central Bank Digital Currency), or digital currency issued by a central bank.
Unlike decentralized cryptocurrencies like Bitcoin or Ethereum, Drex will be controlled by the Central Bank and backed by physical real, functioning as an extension of the Brazilian fiat currency.
How will Drex work?
Drex will be used within a permissioned blockchain infrastructure, meaning a distributed network, but with access controlled by financial institutions authorized by the Central Bank.
The average citizen will not need to understand blockchain to use Drex — in practice, it will work through traditional financial applications and services, such as digital wallets and banks, all with a structure provided by the Central Bank. More or less like Pix, which you can use with your preferred financial institution, but whose base is unified, from the BC.
Some important characteristics about Drex:
Convertible 1:1 with the real — that is, R$ 1 in Drex is worth R$ 1 in physical currency;
Instant transactions, like in Pix, but with more advanced functionalities;
Base for innovations such as smart contracts, asset tokenization, and programmable payments.
The great novelty, from which the biggest innovations will come, is precisely in this last characteristic.
What will be the practical applications?
Drex goes far beyond being just a "digital version of money." It opens up space for a new generation of financial services, with more automation, transparency, and efficiency.
Some examples of what will be possible when it is valid:
Tokenization of assets: it will be possible to digitally represent goods such as real estate, cars, or even corporate shares, facilitating their negotiation or use as collateral for loans;
Programmable payments: smart contracts could automatically release payments based on pre-established conditions, such as in the case of rents or services rendered;
Transfers with total traceability: ideal for secure purchases, use in public policies, and income transfer programs, ensuring the correct destination of the amount;
Financial inclusion: through fintechs, cooperatives, and digital banks, Drex could reach audiences that currently have limited access to the traditional banking system.
Is Drex coming to replace cash?
No. The Central Bank has made it clear that Drex will not replace physical money, which will continue to circulate. The idea is to expand the options for using the real, not eliminate the existing ones.
In addition, it is also important to highlight that Drex will not serve to monitor the population. The system is auditable and transparent for authorized institutions, but it respects banking secrecy rules. The goal is to modernize the economy, not to surveil citizens.
Drex x Cryptocurrencies: what are the differences?
Although it uses technology similar to that of cryptocurrencies — like blockchain — Drex has fundamental differences compared to assets like Bitcoin. While Drex is issued and controlled by the Central Bank, cryptocurrencies are decentralized and created by independent communities or protocols.
Drex is backed by the real, with 1:1 parity, which ensures value stability. Some cryptocurrencies, on the other hand, lack backing and have high market volatility. Furthermore, the objective of Drex is to strengthen monetary policy and promote efficiency in the financial system, while cryptocurrencies emerged as alternatives to the traditional system.
Another point of distinction is network control: in the case of Drex, the infrastructure will be permissioned and accessed only by authorized institutions. In cryptocurrencies, anyone can participate in the network and validate transactions.
These differences make it clear that, although they share the same technological base, Drex and crypto assets have quite distinct natures and purposes.
What will change in the daily life of Brazilians when Drex starts to be valid?
For the average user, Drex could bring benefits such as:
Less bureaucracy in financial operations;
Faster and safer loans - at a lower cost, as collateral will be easier to access;
Automatic and traceable payments;
Easier access to innovative financial services, even without an account in a traditional bank.
And, just as Pix became part of daily life, Drex has the potential to integrate into applications, digital accounts, electronic wallets, and digital government solutions.
Brazil at the forefront of financial digitization
Drex places Brazil among the most advanced countries in developing state digital currencies. Similar projects have been tested in China, Europe, and countries in Latin America — but few are so close to large-scale implementation as Drex.
With it, the Brazilian financial system can become more efficient, competitive, and transparent, strengthening the country's digital economy and promoting greater inclusion.
Drex: more than a digital currency, a new infrastructure
Drex is not just a digital version of the real — it is a platform for financial innovation. It represents a new layer of infrastructure that can transform everything from how we pay rent to how the government distributes social benefits.
With a launch expected for 2025/26, Drex promises to be another milestone for the Central Bank in modernizing the financial system, following the success of Pix.
And if everything goes as planned, Brazilians may be about to experience a new revolution in the use of money — this time, with intelligence, automation, and total digital security.
Will Drex be a success in use like Pix?
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Photo available on the website of the Central Bank of Brazil (BCB)
