What is DREX?
DREX is the Brazilian Central Bank Digital Currency (CBDC), designed to bring innovation and inclusivity to Brazil's financial ecosystem.
Understanding the Name
The name DREX was carefully developed following the same successful branding approach used for PIX. According to Director Maurício, a good brand "helps in product recognition and familiarity." The name components represent:
- D and R: Representing "Digital Real"
- E: Standing for "Electronic"
- X: Symbolizing modernity, connectivity, and Distributed Ledger Technology (DLT)
Visual Identity
The DREX visual concept aligns with BC#'s modernization agenda through:
- Typography and graphic elements that evoke the digital universe
- Two arrows integrated into the "d" symbolizing the Real's evolution into the digital realm
- Color transition from blue to light green representing "completed transaction"
- Modern and strong phonetics for better public recognition
DREX is a flagship project of the Brazilian Central Bank's innovation agenda, known as Agenda BC#. This agenda emphasizes modernizing financial systems and promoting economic inclusion.
The DREX Platform
Unlike traditional currencies, DREX operates on a versatile digital platform where users can hold not only Digital Real (commercial bank digital money or tokenized deposits) but also a wide array of tokenized assets, including:
- Government debt securities
- Property titles (e.g., vehicles, real estate)
- Stocks and other securities
- Various digital assets
This broad functionality positions DREX as a transformative tool for digitizing and simplifying asset management.
How Does It Work?
Accessing DREX requires going through an authorized financial intermediary, such as a bank or fintech. These intermediaries act as bridges, converting traditional deposits into the Digital Real. This structure maintains the involvement of regulated institutions while enabling access to cutting-edge digital financial tools.
What Makes DREX Unique?
DREX stands out because it is based on commercial bank digital money (tokenized deposits) rather than being a direct retail CBDC. This model leverages the existing financial ecosystem, fostering collaboration between the central bank, financial institutions, and end-users.
Explore our guide on different types of CBDCs to understand how DREX compares globally.
Official information from the Brazilian Central Bank