The Banco Central do Brasil (BCB) recently released a list of more than a dozen themes and related market participants for the second phase of the Drex Pilot, the Brazilian Digital Real.
Among those themes is credit collateralized by term deposits and government bonds, with BB, Bradesco, and Itaú taking part in the former and ABBC, ABC and MB for the latter. Another use case is a liquidity pool for trading government bonds.
This second phase will test the implementation of financial services made available through smart contracts created and managed by third parties participating in the platform.
“We will evaluate the different use cases, always considering the privacy requirements demanded by current legislation. We will also test the use of assets not regulated by the BCB. We are working with the Brazilian Securities and Exchange Commission (CVM) on this. Other regulators have also shown interest in testing operations with assets under their jurisdiction to broaden the platform’s usability,” explained Fabio Araujo, coordinator of the Drex Initiative and consultant at the BCB’s Department of Banking Operations and Payments System (Deban), in a statement.