Brazil’s central bank is developing a synthetic central bank digital currency, which aims to blend decentralization, privacy and programmability.
Brazil is incorporating decentralized finance (DeFi) principles into ongoing experiments toward developing its in-house “synthetic” central bank digital currency (CBDC), Drex, which was previously called the digital Brazilian real.
On Oct. 3, Roberto Campos Neto, president of Banco Central do Brasil, highlighted the country’s need for a multidimensional CBDC that addresses the “trilemma” of decentralization, privacy and programmability — challenges that traditional markets have struggled to resolve simultaneously.
While presenting for a Markus’ Academy presentation on The Future of Financial Intermediation, Neto said:
