Brazil Central Bank Opens Applications For Second Phase Of Drex CBDC Pilot Project

According to Odaily, 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. This phase will particularly focus on commercial cases that can be implemented through smart contracts. Although the launch date for Drex has not been determined, its coordinator, Fábio Araújo, hinted that the central bank is considering conducting live tests following this round of the pilot project. The central bank stated that there is no limit to the number of projects its executive management committee will consider. New commercial cases should emphasize privacy solutions, especially in relation to Brazil's General Data Protection Law, and address existing and potential legal implementation obstacles. Tokenization and decentralized finance (DeFi) will also be key areas of focus in this round of testing, and the interaction of Drex with other networks will need to be tested. It is reported that the country's securities regulator intends to create a tokenization sandbox this year.