Advancements in Brazil's CBDC Technology

The Central Bank of Brazil (BCB) is progressing its central bank digital currency (CBDC) framework initiative through a collaboration with Banco Inter, Microsoft Brazil, 7COMm, and Chainlink. This partnership aims to enhance trade finance solutions in the second phase of Brazil’s DREX pilot program by automating cross-border settlements for commodity transactions using blockchain technology and oracles. Leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP), the test will enable seamless interactions between Brazil’s DREX platform and foreign central banks. The initiative involves tokenizing an Electronic Bill of Lading (eBOL) and integrating supply chain data to automate payments, ensuring exporters are paid at various shipping stages. The pilot showcases how blockchain-based trade finance facilitates Delivery versus Payment (DvP) and Payment versus Payment (PvP) mechanisms to enhance efficiency, security, and transparency in the global supply chain, particularly in agricultural commodities. The collaboration also explores payment and delivery systems for trade finance and carbon credits amid global tokenization shifts, with stablecoins aiding Latin Americans in hedging against currency devaluation.