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Digital real will not expand state control, says Drex coordinator
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During the Criptorama 2024 event, promoted by the Brazilian Cryptoeconomics Association (Abcripto), the Drex coordinator at the Central Bank, Fabio Araujo, stated that the digital real, known as Drex, will not expand the Central Bank’s control or visibility over finances. personal characteristics of the population.
As Araujo emphasized, Drex’s operation will be decentralized, conducted by several “nodes” managed by financial institutions participating in the pilot project.
According to a report by Valor Econômico, Araujo explained that Drex does not adopt a state know-your-customer (KYC) process for all users. According to him, the network operates with pseudo-anonymity and can be augmented with zero-knowledge proof (ZKP) solutions. In practice, this would make individual transaction analysis difficult.
“Participants operate us and we do not KYC anyone. Only banks have access to this data, as is the case today”, he declared.
Impacts of Drex on credit and real estate financing
Currently, the Drex project is in its second phase, with registrations open for new consortia until November 29th. Araujo highlighted the importance of the entry of new participants to further decentralize the system, currently made up mostly of large banks.
One of Drex’s main objectives, according to Araujo, is to reduce credit costs by facilitating the use of tokenized guarantees as collateral in loans. He highlighted that the initiative can democratize access to credit and reduce banking spreads.
Among the use cases being tested is the offer of credit using tokenized guarantees, such as CDBs, conducted by consortia involving institutions such as Itaú, Bradesco and Banco do Brasil. Guto Antunes, head of digital assets at Itaú, commented that the objective is to simplify processes and create accessible infrastructure.
Furthermore, Araujo pointed out that Drex has the potential to reduce costs in real estate financing, especially by eliminating the need for manual data reconciliation, currently dependent on often outdated documentation systems.
“The potential for efficiency gains is very large, as current technology is complicated and expensive,” he stated.
Another advantage mentioned by Araujo is the programmability allowed by distributed ledger networks (DLTs), which enable faster and more secure operations. This functionality is seen as essential for modernizing financial systems and reducing operational costs.
Digital real will not expand state control, says Drex coordinator
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Digital real will not expand state control, says Drex coordinator
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Digital real will not expand state control, says Drex coordinator
