Companies can submit proposals for smart contract development until November 29
From last Monday (14) until November 29, companies interested in participating in the second phase of testing of Drex, the digital version of the real, will be able to send their proposals to the Central Bank (BC). The tests will focus on the development of businesses related to smart contracts.
"The pilot project is aimed at financial market institutions that have the capacity to test the proposed business model, including asset issuance, redemption or transfer transactions, in addition to simulations of financial flows resulting from trading events," the BC said in a note.
Smart contracts, generated by the blockchain technology used in cryptocurrencies, are programs that automatically execute the terms and conditions of a contract as soon as they are activated. This allows actions such as money transfers, payments and registrations to occur automatically, reducing bureaucratic steps such as deeds and signatures at the notary's office, which reduces costs and increases efficiency.
Operations possible with smart contracts include the purchase and sale of vehicles, real estate, and negotiations of agribusiness assets. For example, when selling a vehicle, the smart contract eliminates doubts about who should make the deposit or transfer documents first, making the process instantaneous and automated, which reduces costs with bureaucracy and intermediaries.
Drex is scheduled to be launched next year and is currently undergoing testing with a pilot version. The goal is to ensure security, scalability, and privacy of user data. The project should focus on areas of the financial system that are not covered by Pix, promoting advances in economic digitalization.
Economy
Digital Real: Central Bank begins testing phase of Drex; will it replace Pix?
Companies can submit proposals for smart contract development until November 29
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Economy
Digital Real: Central Bank begins testing phase of Drex; will it replace Pix?
Louis Felipe Granado
19/10/2024 04:11
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From last Monday (14) until November 29, companies interested in participating in the second phase of testing of Drex, the digital version of the real, will be able to send their proposals to the Central Bank (BC). The tests will focus on the development of businesses related to smart contracts.
"The pilot project is intended for financial market institutions that have the capacity to test the proposed business model, including asset issuance, redemption or transfer transactions, in addition to simulations of financial flows resulting from trading events," the BC said in a note.
Smart contracts, generated by the blockchain technology used in cryptocurrencies, are programs that automatically execute the terms and conditions of a contract as soon as they are activated. This allows actions such as money transfers, payments and registrations to occur automatically, reducing bureaucratic steps such as deeds and signatures at the notary's office, which reduces costs and increases efficiency.
Operations possible with smart contracts include the purchase and sale of vehicles, real estate, and negotiations of agribusiness assets. For example, when selling a vehicle, the smart contract eliminates doubts about who should make the deposit or transfer documents first, making the process instantaneous and automated, which reduces costs with bureaucracy and intermediaries.
Drex is scheduled to be launched next year and is currently undergoing testing with a pilot version. The goal is to ensure security, scalability, and privacy of user data. The project should focus on areas of the financial system that are not covered by Pix, promoting advances in economic digitalization.
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Differences between Pix and Drex
Marcio Castro, CEO of RTM, a technology integration hub for the financial market, emphasizes that it is important to clarify that Drex and Pix are not technologies that compete with each other.
"Pix will not end and will continue to be a payment tool in the daily lives of people and financial institutions. Drex, on the other hand, goes beyond simple electronic payments. With the digital Real, it will be possible to bring innovations such as smart contracts, tokens and payments via IoT to Brazilians. The first use cases of Drex in production should initially be in the institutional sphere, that is, transactions between companies in the financial market", he explains.
How will Drex impact day-to-day life?
According to the expert, an example of how Drex will positively impact the user's life is the possibility of using smart contracts, which are programs that work under predefined conditions, ensuring security, transparency and immutability, reducing bureaucracy and costs in processes such as buying and selling real estate, vehicles and various services.
"With the official launch of Drex, smart contracts will be able to be used in financial services such as loans, insurance, buying and selling real estate and even copyright management. The creation of a digital sovereign currency has given rise to countless use cases for tokenization projects that are starting to take shape with the expectation that Drex will go into production in 2025, which has also happened in other countries," says Castro.
"One of the positive aspects of this new feature is the reduction of administrative costs and improved efficiency in transactions, compared to the traditional system. Another important impact on financial institutions and banks is that Drex will promote innovation on the part of these institutions. They will need to adapt to Drex regulations, but they will also be able to use the technology to obtain competitive advantages," he adds.
