The concept of a Central Bank Digital Currency, or CBDC, represents the next frontier in the evolution of money. It is a digital form of a country’s official currency that, unlike physical cash or commercial bank deposits, is a direct liability of the central bank. As nations worldwide explore this innovation, Brazil has emerged as a global frontrunner with its own advanced project.
As of October 2025, the Brazilian CBDC project is in its final pilot stages, with a public launch expected to begin shortly. This article explains what a CBDC is, the specifics of Brazil’s digital currency—the Drex—and how it is set to function.
Content:
- The concept: what is a central bank digital currency?
- Meet Drex: Brazil’s official digital currency
- The official timeline: when will Drex be available?
- How Drex will work in practice: beyond instant payments
The concept: what is a CBDC – central bank digital currency?
A CBDC is the digital equivalent of a country’s fiat currency. Unlike cryptocurrencies such as Bitcoin, a CBDC is centralized and issued and backed by the monetary authority of the country, giving it the same stability and trust as traditional money. Unlike the electronic balance you see in your bank account (which is a liability of your commercial bank), a CBDC in its purest form would be a direct claim on the central bank, making it the safest possible form of digital asset for consumers.
Meet Drex: Brazil’s official digital currency
The Brazilian CBDC was officially named Drex. The name is an acronym formed by the letters ‘D’ for digital, ‘R’ for the Real, ‘E’ for electronic, and ‘X’ to convey modernity and connection, reminiscent of the highly successful Pix.
Drex is being developed on a Distributed Ledger Technology (DLT) platform, which will enable the use of smart contracts and programmable money. However, Brazil has opted for a “wholesale” CBDC model. This means that the general public will not have direct accounts with the Central Bank. Instead, the Central Bank will issue the wholesale Drex to authorized financial institutions (like banks and payment institutions). These institutions will then provide the retail Drex to their customers in the form of “tokenized deposits,” which are fully backed by and convertible to the wholesale Drex.
The official timeline: when will Drex (CBDC) be available?
As of October 2025, the Drex project is concluding its extensive pilot phase. Throughout 2024 and 2025, the Central Bank has conducted a series of advanced tests with a select group of financial institutions, focusing on the security, scalability, and programmability of the platform. These tests have included simulations of core use cases, such as the settlement of tokenized government bonds.
With the pilot phase nearing completion, the official public rollout is imminent. The Central Bank has signaled a phased launch, expected to begin at the end of 2025 or, more likely, in the first half of 2026. The initial phases will likely be focused on specific financial operations before being gradually expanded to the general public.
How Drex will work in practice: beyond instant payments
It is crucial to understand that Drex is not a replacement for Pix. While Pix is an instant payment system that moves existing money between bank accounts, Drex is a new form of the money itself.
The primary innovation of Drex is its programmability. Through smart contracts, Drex will enable more complex, conditional, and automated transactions. The initial use cases are focused on the financial market, particularly in Delivery versus Payment (DvP) settlements.
For example, the ownership of a tokenized asset (like a car, property, or government bond) could be transferred simultaneously with the payment, with both actions executed automatically by a smart contract. This eliminates settlement risk and drastically reduces costs and bureaucracy. For the public, this technology will eventually enable safer online purchases, automated contract payments, and new financial products.
Drex represents the next logical step in the modernization of Brazil’s financial system, building upon the foundation laid by Pix. It is not designed to simply make payments faster—Pix already does that. Instead, the Brazilian CBDC will introduce a new layer of efficiency, security, and innovation by bringing programmable smart contract capabilities to the national currency. As its phased rollout begins in 2026, Drex is poised to unlock a new digital economy, creating opportunities for new business models and making financial transactions more secure and intelligent.
For further information regarding our services, get in touch:
