Two years after Brazil appeared poised to lead the world’s financial modernization with its own central bank-issued digital currency, the Drex (Digital Real) project is losing steam. Once hailed as the next step after the ground-breaking instant payment system Pix, Drex is now being quietly shelved.
The move doesn’t come as a monumental shock, given that the Central Bank announced in August that it would narrow Drex’s scope, shifting from blockchain to a loan collateral platform targeted for 2026.
The Central Bank has reportedly decided to shut down the blockchain-based platform that supported the first two testing stages of the project, due to high costs and unresolved concerns about privacy and data protection in transactions.
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