The Brazilian Central Bank is accepting applications for the second phase of the Drex central bank digital currency (CBDC) pilot project from October 14 to November 29. Business scenarios that can be implemented with smart contracts are of particular interest.

Although Drex has not yet announced a launch date, Fábio Araújo from the Central Bank hinted that live tests could be conducted after this pilot round.

The new business scenarios should emphasize a privacy solution that complies with the Brazilian General Data Protection Law and address existing and potential legal hurdles.

Tokenization and decentralized finance (DeFi) will also be the focus of this round of tests. Drex’s interaction with other networks will also be tested.

What do you think of the developments? We welcome your comments.