Pix and Drex: The Silent Revolution of Money

Brazil has become a global benchmark when it comes to innovation in the financial system. The launch of Pix in 2020 was a watershed moment: it enabled instant, free transfers available 24/7, replacing old habits such as using cash, TEDs, or bank slips. Now, with the arrival of Drex, the digital version of the real issued by the Central Bank, our country is preparing for another transformation—a quieter one, yet with immense potential to impact our financial journey.

Drex, which is being developed as Brazil's official digital currency, is not merely a "virtual version" of the real, as many believe. It is an infrastructure based on distributed ledger technology (blockchain), which will enable smart contracts, enhanced security, and new possibilities for automation in financial transactions. Unlike Pix, which only transfers value between bank accounts, Drex allows money itself to have programmable rules, opening the door for innovation in areas such as credit, insurance, conditional payments, and much more.

As the digital currency system develops, the Central Bank intends to strengthen security policies and user data protection. This measure is indeed necessary, given that data indicates Drex has already moved R$ 2 billion in pilot transactions as of December 2024, with initial adoption by 20 financial institutions. By 2025, expectations are that this number will exceed R$ 50 billion, with the participation of over 100 banks and fintechs. According to a survey by Swiss Capital, the use of Drex could reduce operational costs for financial institutions by up to 40%, due to the elimination of intermediaries in transactions and the use of smart contracts.

Impact on daily life

With the integration between Pix and Drex, consumers will experience an even more seamless financial experience. Imagine paying your monthly rent through a smart contract that automatically transfers the amount on the due date, or obtaining an instant loan with guarantees programmed via Drex. Bureaucracy will be replaced by automation, and trust will no longer rely solely on intermediary institutions.

Furthermore, I believe the digital currency can be a powerful ally in financial inclusion. Pix has already taken the first steps in this direction by offering a simple payment method for millions of unbanked Brazilians. Drex can further expand this access by enabling fintechs and other institutions to create more accessible, personalized, and secure products, leveraging the potential of smart contracts and decentralization.

Naturally, it is not all roses. The complete digitization of money raises important questions about privacy, state surveillance, and data security. There is also the risk of digital exclusion, especially for segments of the population with limited access to technology or the internet. It will be essential to ensure that Drex is intuitive and accessible, and that public policies accompany its implementation with a focus on financial and digital education.

Brazil is at the forefront of financial system transformation. With Pix already established and Drex under development, we are moving towards an ecosystem where money will be smarter, more efficient, and more inclusive. However, the success of this journey will depend on the ability to balance innovation with responsibility, ensuring that the benefits of this new era reach everyone.

Renan Basso is co-founder and business director of MB Labs, a renowned company specializing in consulting and development of applications and digital platforms. With a solid career in the technology sector. Holding a degree in computer engineering from PUC Campinas and an MBA from DeVry Educacional do Brasil, Basso is a technology specialist, software engineer, and systems developer for major companies. He is an expert in building technology for the financial industry and super apps. With extensive experience in the technology and finance sectors, his goal is to drive innovation and create solutions for fintechs.