The president of the Central Bank of Brazil publicly spoke again about the controversial topic in the country.
Gabriel Galípolo participated in the opening of Febraban Tech 2025 (Photo: Antônio Cruz/Agência Brasil)
The president of the Central Bank of Brazil, Gabriel Galípolo, said this Tuesday (10) during his presentation at the opening panel of Febraban Tech 2025 that the Drex is not exactly a digital currency in the style of a CBDC (Central Bank Digital Currency).
According to him, the currency comes more as a mechanism for efficiency in credit and access to new financial products through blockchains. In other words, it should not have a function of disintermediation of currency issuance.
To the public, the central bank released Galípolo's presentation from this Tuesday, which shows what he talked about beyond the Drex.
Presentation of the Drex at Febraban Tech 2025 by the president of the BCB (reproduction).
See the details presented by the president of the Central Bank of Brazil about the Drex.
While briefly discussing the Drex in his presentation to the market, Galípolo highlighted what he understands the BCB should implement in terms of technology.
"I have been commenting on the Drex and some papers have helped me clarify that the Drex is not exactly a Central Bank Digital Currency as literature treats it," said the president of the BCB.
He also stated without going into depth that the subject involves a large discussion, such as endogenous or exogenous currency, among other topics.
"All the literature and actions of monetary policy today have worked in this direction and concluded, that is, today you have a process that you clearly understand that the process of monetary issuance takes place through the credit of banks," he added.
According to Galípolo, the placement of the CBDC involves a disintermediation process, but he assures that the Drex agenda does not go through this process.
"The Drex agenda is much more a DLT, you have a Distributed Ledger that will use smart contracts and will also use tokenization to make the processes of buying and selling and financial transactions easier, but also to facilitate the collateralization of assets for precisely the collateralized credit we have been discussing, the more we can advance this agenda of reducing the perception of risk on the part of those granting credit and ease the customer experience for those taking credit in offering more appropriate guarantees, these will be the lines of credit for the planning and objectives of that person," he added.
At the end of his presentation, Galípolo also said that one of the most important topics at the central bank today is advancing the Drex agenda. Finally, he thanked all the participants of Febraban Tech 2025, many from the banking sector.