Brazil has become a global reference when it comes to innovation in the financial system. The launch of Pix in 2020 was a game-changer: it enabled instant, free, and 24/7 transfers, replacing old habits like 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, but with a tremendous potential impact on our financial journey.
Drex, which is being developed as Brazil’s official digital currency, is not just a ‘virtual version’ of the real, as many think. It is an infrastructure based on distributed ledger technology (blockchain) that will enable smart contracts, enhanced security, and new possibilities for automation in financial transactions. Unlike Pix, which only transfers funds 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 aims to strengthen user data security and protection policies. This measure is indeed necessary, as data shows that Drex has already processed R$2 billion in pilot transactions by December 2024, with initial adoption by 20 financial institutions. By 2025, expectations are that this number will exceed R$50 billion, with participation from over 100 banks and fintechs. According to a survey by Swiss Capital, Drex could reduce financial institutions’ operational costs by up to 40%, due to the elimination of intermediaries in transactions and the use of smart contracts.
Impact on Everyday Life
With the integration between Pix and Drex, consumers will experience an even smoother financial experience. Imagine paying rent through a smart contract that automatically transfers the amount on the due date or obtaining an instant loan with programmed collateral via Drex. Bureaucracy will be replaced by automation, and trust will no longer depend 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, customized, and secure products, leveraging the potential of smart contracts and decentralization.
Naturally, not everything is perfect. The complete digitization of money raises important questions about privacy, government 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 crucial 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 in development, we are moving toward an ecosystem where money will be smarter, more efficient, and more inclusive. However, the success of this journey will depend on balancing innovation with responsibility, ensuring that the benefits of this new era reach everyone.
Renan Basso is co-founder and business director at MB Labs, a renowned company specializing in consulting and development of digital applications and platforms. With a solid career in the technology sector and a background in computer engineering from PUC Campinas and an MBA from DeVry Educacional do Brasil, Basso is a technology expert, software engineer, and systems developer for major companies. Specialized in building technology for financial industries and super apps, he has extensive experience in the tech and finance sectors, aiming to drive innovation and create solutions for fintechs.
