The Central Bank of Brazil will abandon blockchain technology to promote the Drex digital currency

According to reports, the Central Bank of Brazil will abandon most of the tokenization and blockchain technology, planning to launch its digital currency Drex in 2026. The coordinator of the Central Bank's Drex project, Fabio Araujo, confirmed this change and stated that the new plan will be implemented in two phases: the first phase will not include decentralized elements and is expected to be launched next year; the second phase will continue to implement and improve blockchain technology. Due to the lack of programmability in the underlying architecture, many applications will not be feasible in the two-phase pilot testing. Additionally, it is still uncertain whether the project will continue to use Hyperledger Besu. Hyperledger Besu is an open-source, Ethereum-compatible blockchain platform solution that was chosen as the development platform for Drex as early as 2023.