Brazil Abandons Blockchain-Based CBDC for Private Stablecoin Regulation

Brazil's Central Bank (BCB) is shifting its focus from blockchain-based infrastructure to regulating private stablecoins and tokenisation platforms.

The Drex project, which aimed to integrate crypto-style infrastructure into everyday economic life, has been stripped of its blockchain architecture after failing privacy tests and losing pilot participants Microsoft and EY.

Luiz Souza, a Brazilian real estate broker, sees potential in digital rails for tokenisation. He believes it could allow brokers to buy fractional stakes in properties without down payments.

The BCB is building a regulatory framework for private stablecoins and tokenisation, which will complement the existing instant-payments rail Pix.