Based on the information detailed in the press release, node connection is the company’s first step within the pilot project of Drex, formerly known as Real Digital, for asset tokenization with the aim of making transfers increasingly simple, safe, and efficient.
The start of practical tests as part of Nubank's integration into the pilot project of Drex is enabled by connecting the company’s infrastructure to the Drex blockchain network, which operates on the Hyperledger Besu technology, chosen by the Brazilian Central Bank for transactions.
As highlighted in the announcement, the digital version of Real is set to be an important step for other types of assets, such as automobiles, to have a digital representation on the Drex platform, which is believed to help decrease trading risks and operational costs alike, while also helping simplify the process.
When commenting on the announcement, Thomaz Fortes, general manager of Nubank Cripto’s operations advised that Nubank is a blockchain technology enthusiast and believes that the success of Drex has an increased potential to make its customers’ financial operations more simple, safe, and efficient. Per their statement, there is an increased capacity for innovation and evolution of day-to-day operations, such as the transfer of ownership of physical assets.
The press release further highlights Nubank as being one of the 16 financial institutions selected by the Brazilian Central Bank to participate in the pilot project of Drex, with the testing being expected to be completed by the end of 2024. Following the integration of its technological node into the network of the Brazilian Central Bank, Nubank is now enabled to test and simulate transactions with different tokenized financial assets that are part of the pilot, in addition to contributing to the development of solutions to help ensure the privacy and security of the network.
Monetary authorities and international organisations worldwide are tracking the increased usage of digital assets in financial transactions (tokenization) in recent years, with central banks representing almost the total global GDP studying, exploring, or testing systems for the issuance of central bank digital currencies (CBDC) for different purposes.
The Brazilian Central Bank has been working towards issuing the Brazilian sovereign currency in digital format, having established the guidelines for issuance of the digital Brazilian currency (Guidelines of Digital Brazilian Real, May 2021) based on the results of a working group created in August 2020.
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