Brazil’s CBDC Drex pilot opens second phase of applications, with testing focusing on privacy and DeFi

The Central Bank of Brazil will accept applications for the second phase of the Drex central bank digital currency (CBDC) pilot project from October 14 to November 29, with a particular focus on business cases that can be implemented through smart contracts. Although the launch date of Drex has not yet been determined, its coordinator Fábio Araújo hinted that the central bank is considering field testing after this round of pilots. The central bank said in a statement that there is no limit to the number of projects that its executive management committee will consider. New business cases should emphasize privacy solutions, especially in terms of Brazil's General Data Protection Law, focusing on addressing existing and potential legal barriers to implementation. Tokenization and DeFi will also be the focus of this round of testing, and Drex's interaction with other networks will also need to be tested. It is reported that the country's securities regulator intends to create a tokenization sandbox this year. (Cointelegraph)