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Brazil is advancing its Central Bank Digital Currency (CBDC) initiative, Drex, by integrating decentralized finance (DeFi) elements into the project. The latest initiative aims to modernize Brazil’s financial infrastructure and has introduced new phases of experimentation that incorporate DeFi concepts into the CBDC framework. Roberto Campos Neto, President of Banco Central do Brasil, discussed these advancements on October 3, 2024.
According to Neto, the new CBDC must successfully balance these three elements to create a transformative digital currency that goes beyond the traditional use cases of CBDCs.
In his presentation, Neto explained that Drex is designed to tackle a long-standing financial challenge: the “trilemma” of decentralization, privacy, and programmability.
Brazil Leveraging DeFi In Their CBDC Pilot Program: Drex