In the mentioned country, Banco Inter will help in implementing the DREX platform, and at the same time, Microsoft Brazil along with 7COMm will offer cloud services and technical support.
The CCIP infrastructure of Chainlink will clear the path for cross-chain transfers for DREX and other central bank digital currencies.
The CCIP of Chainlink plays a vital role in enabling secure cross-border, cross-currency, and cross-chain transactions and will play a role in showcasing what tokenized assets can do at scale for this major CBDC use case in Brazil.
Brazil is now moving forward with its CBDC framework initiative as the Central Bank of Brazil is doing a partnership with Banco Inter, Microsoft Brazil, 7COMm, and Chainlink.
On November 19, the country publicized that the collaboration would help in supporting financial solutions in the second phase of the DREX pilot program of Brazil. The second phase will mainly target the automation of cross-border deals for commodity transactions with the help of blockchain technology and oracles.
Collaboration helping the DREX pilot program in Brazil
The Cross-Chain Interoperability Protocol (CCIP) of Chainlink will help in smooth contact between the DREX platform of Brazil and foreign central banks. This step will also further help in tokenizing an Electronic Bill of Lading (eBOL) and amalgamating supply chain data into automated payments.
This approach which is mainly data-driven will help make sure that exporters are receiving payments at different stages of the shipping process. The pilot has intentions to exhibit how Delivery versus Payment (DvP), as well as Payment versus Payment (PvP), is backed by blockchain-based trade finance.
The process mainly focuses on enhancing efficiency, security as well as transparency in terms of the supply chain, mainly agricultural commodities over the globe.
In the mentioned country, Banco Inter will help in implementing the DREX platform, and at the same time, Microsoft Brazil along with 7COMm will offer cloud services and technical support. The CCIP infrastructure of Chainlink will clear the path for cross-chain transfers for DREX and other central bank digital currencies.
What does the head opinionate?
Angela Walker, the Global Head of Banking and Capital Markets at Chainlink shares her opinion on the matter that the pilot will undoubtedly revolutionize trade finance by exhibiting how tokenized assets can open the doors for CBDC applications in the country.
The head further added that “The CCIP of Chainlink plays a vital role in enabling secure cross-border, cross-currency, and cross-chain transactions and will play a role in showcasing what tokenized assets can do at scale for this major CBDC use case in Brazil ”
The head of emerging technologies at Banco Inter, Bruno Grossi threw light on the potential of the project to broaden market access and make the economic structure of Brazil more stronger. At the same time, Microsoft Brazil revealed that it will help DREX to increase access to intelligent financial services and play a major role in the growth of the economy of Brazil.
The Application for Participation
On October 14, the Central Bank of Brazil released a report in which it mentioned that “The Bank is now accepting applications for participation in Drex, the digital version of the Brazilian real. The application portal is open starting today and will remain accessible until November 29, 2024. The goal is to introduce tokenized currency options in Brazil.
To date, the Bank has approved applications for 13 digital real use cases, including government-funded loans, real estate, and more. Moving forward, the next phase will focus on individuals who wish to explore new use cases beyond those already examined.
