Brazil's CBDC Project Drex Aims To Replace National Transaction System

According to Odaily, Fabio Araujo, the coordinator of Brazil's CBDC pilot project Drex, envisions that the network will eventually replace the current national transaction system and transfer all funds currently settled by the Reserve Transfer System (STR). However, he noted that this transition will take time due to the significant costs involved. Araujo also clarified that the system has no direct connection with real estate records, as banks are not interested in taking over these operations. The primary goal of Drex is to manage and simplify financial settlements. Although Drex is currently in its second pilot phase, Araujo believes that the technology behind it has the potential to replace STR. The country's central bank has stated that STR is considered the backbone of Brazil's financial system, handling the settlement of currency, foreign exchange, and capital markets within institutions managing bank accounts.