Brazil has become a global reference when it comes to innovation in the financial system. The launch of Pix in 2020 was a turning point: it enabled instant, free transfers available 24 hours a day, 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 bit more silent, but still with a huge 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), which will enable smart contracts, greater security, and new automation possibilities in financial transactions. Unlike Pix, which only transfers funds between bank accounts, Drex allows the money itself to have programmable rules, opening up opportunities 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 truly necessary since data shows that Drex has already processed R$ 2 billion in pilot transactions by December 2024, with an initial participation of 20 financial institutions. By 2025, the expectation is that this number will exceed R$ 50 billion, with the participation of more than 100 banks and fintechs. According to the Swiss Capital survey, the use of Drex can reduce the operational costs of financial institutions by up to 40%, due to the elimination of intermediaries in transactions and the use of smart contracts.
Everyday impact
With the integration between Pix and Drex, the consumer will be able to experience an even smoother financial experience. Imagine paying the monthly 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 that 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 allowing fintechs and other institutions to create more accessible, personalized, 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, 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 support its implementation with a focus on financial and digital education.
Brazil is at the forefront of transformation in the financial system. With Pix already established and Drex in development, we are moving towards an ecosystem where money will be smarter, more efficient, and 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 the development of digital applications and platforms. With a solid career in the technology sector. With 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 large companies. Specialist in building technology for the financial industries and super apps. With extensive experience in the technology and finance sectors, aiming to drive innovation and create solutions for fintechs.
