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Brazil’s Central Bank has accelerated plans for its digital currency, Drex, aiming for a 2026 launch, but has abandoned blockchain technology for a centralized platform, as announced on August 6, 2025, during Blockchain Rio. The shift prioritizes scalability, control, and integration with Brazil’s Pix instant payment system, which processed over 4 billion transactions in 2024. The decision, detailed by President Gabriel Galípolo, reflects the need for faster deployment and compliance with anti-money-laundering (AML) and know-your-customer (KYC) regulations.
Initially piloted in 2023 with blockchain elements, Drex will now leverage a database infrastructure akin to Pix, ensuring high transaction throughput and regulatory oversight. This move has sparked debate: crypto advocates, via posts on X, criticize it as a retreat from decentralization, while supporters argue it enhances efficiency and stability for a national CBDC. Drex aims to modernize Brazil’s payment ecosystem, boost financial inclusion for the unbanked, and support credit operations, building on Pix’s success in transforming digital transactions.
The Central Bank plans phased testing in 2025, engaging banks like Banco Inter and tech firms like Microsoft, with Chainlink’s CCIP previously used for cross-border trade finance pilots. Despite dropping blockchain, future phases may explore its integration for specific use cases. Brazil’s leadership in digital payments positions Drex to strengthen economic sovereignty, potentially integrating with BRICS PAY for global connectivity.
With a $1.5 billion pilot investment, Drex is set to be one of Latin America’s most ambitious CBDC projects, competing with initiatives like China’s digital yuan. The 2026 rollout could redefine Brazil’s financial landscape, offering a secure, government-backed digital currency.
