Brazil’s CBDC Advances With Chainlink, And Leading Tech Partners

Brazil’s central bank has chosen Banco Inter, Microsoft Brazil, 7COMm, and Chainlink to work together to create a trade finance system for the second part of its DREX digital currency project. DREX is a digital version of the country’s currency, the real, and its goal is to make financial transactions safer and faster. This will be especially helpful for banks and top businesses that need to send money and settle deals with other countries.

In the first phase of the DREX project, 16 different groups, mostly made up of banks, tested the digital currency through decentralized networks. These tests helped to make sure DREX would work properly.

The Project Seeks To Streamline Trade Through Blockchain Technology

In the second phase, Brazil is focusing on making DREX even better by adding more financial services. These services will work through smart contracts. These contracts will help make transactions faster and more efficient. Visa and Santander were also chosen to help with this phase.

The goal of the new project is to show how blockchain technology can make trade easier. The project will focus on how to make payments for agricultural products when they are traded across different countries and platforms. Using Chainlink’s technology, these payments will be automated and the technology will also help make sure the transactions are done in different currencies.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will help DREX connect with other digital currencies from other countries. This will make it easier to send and receive money between Brazil and other countries. As part of the project, the team will use an Electronic Bill of Lading (eBoL). These eBoLs will be put on the blockchain, and when goods are shipped, payments will be triggered automatically based on the shipping information.

The Head of emerging technologies, at Banco Inter, Bruno Grossi, noted that Phase 2 of the DREX project is an exciting time for Brazil. He added that working with top companies like Microsoft and Chainlink will help improve Brazil’s economy.

Microsoft Will Provide Cloud Services And Technology For DREX

Angela Walker, the Global Head of Banking and Capital Markets at Chainlink Labs gave her opinion about the partnership. She stated that the team is excited to work with Banco Inter, Microsoft, and the Central Bank of Brazil to show how blockchain technology and Chainlink’s system can change trade finance for the better.

Microsoft will provide the technology and cloud services for this project. João Aragão, innovation specialist for financial services at Microsoft said the company is happy to help develop DREX. He further noted that the team believes it will help make the country’s economy stronger and give people access to smarter financial services.

Chainlink’s technology has already been used in more than $16 trillion worth of transactions and has helped deliver billions of important data points in the blockchain world. Several major companies trust Chainlink’s technology, including banks and companies from places like Australia and New Zealand.