What it is
DREX is Brazil's CBDC initiative, developed by Banco Central do Brasil around a platform for tokenised assets and settlement. It has focused heavily on a wholesale and infrastructure layer, with pilots involving financial institutions.
How it works
DREX is built to enable tokenised deposits and asset settlement on a distributed-ledger-based platform, with the central bank issuing the wholesale layer and banks providing services to the public.
How it differs from crypto and stablecoins
DREX is public digital money and settlement infrastructure, distinct from crypto-assets. Brazil already runs a popular instant-payment system, which shapes DREX's role.
What it means for the market
Brazil's tokenisation-first approach is a notable model for how CBDCs might underpin broader digital-asset markets.
Primary sources
Frequently asked questions
What makes DREX distinctive?
Its emphasis on tokenised assets and settlement infrastructure, rather than a simple retail wallet, in pilot as of this review.