30s Summary

The Central Bank of Brazil is moving into the second round of its digital currency pilot project, Drex, to improve global agricultural trade and supply chain management. Partnering with Microsoft, Chainlink, Banco Inter, and 7Comm, they aim to develop a blockchain-based trade settlement system. Drex’s second phase will leverage Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and use tokenization of electronic bills of lading for supply chain payments. Microsoft will provide the necessary cloud infrastructure, while 7Comm offers blockchain expertise. The pilot is set to continue until 2025, exploring digital transactions for government bonds and international trade.

Full Article

Brazil’s central bank, known as Banco Central do Brasil, has moved into the second round of its digital currency pilot, Drex. The aim of this phase is to improve how we trade agricultural goods and manage supply chains internationally.

This round is all about developing a system for trading using blockchain tech, including oracles – that’s where Microsoft, Chainlink, Banco Inter, and 7Comm come in. They’re banding together to create a way to automate trade settlements.

Chainlink provides a decentralized oracle service and is offering its Cross-Chain Interoperability Protocol (CCIP) for secure transactions across different platforms. This is all part of creating a new system, one where delivery only happens once payment is confirmed, to make things more transparent and efficient.

The aim with this pilot is to fit digital currencies and blockchain technology into Brazil’s economy in a way that streamlines the finance side of trading and helps keep money matters innovative.

Drex’s second phase will utilize the tokenization of electronic bills of lading and other blockchain mechanics, such as payment-versus-payment (simultaneous payment in different currencies), to enhance the automation of supply chain payments and compatibility across platforms and currencies.

For this project, Banco Inter, a digital bank in Brazil, is leading the charge. They see this as a chance to broaden their reach in the market while also boosting the country’s economy.

Microsoft will provide the cloud infrastructure required to run the system, with 7Comm offering technical know-how on blockchain.

This pilot is all about resolving some of the challenges in banking, like decentralization, privacy and programmability, and plans to introduce tokenization onto banks’ balance sheets.

The second Drex pilot phase will continue until 2025, with the aim of looking at digital transactions of assets including government bonds and international trade. Companies like Ripple are also investing in the Brazilian market and exploring cross-border crypto payment options.