Key Points
- Chainlink joins forces with Banco Inter, Microsoft, and 7COMm in Phase 2 of Brazil’s DREX CBDC pilot, focusing on developing a blockchain-based trade finance solution for agricultural commodity transactions.
- The project will utilize Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to enable seamless transactions between Brazil’s Central Bank and foreign central banks, while incorporating tokenized Electronic Bills of Lading.
Brazilian Central Bank Advances CBDC Development with New Trade Finance Initiative
The Central Bank of Brazil (BCB) is taking significant steps forward in its digital currency development by selecting a consortium of tech leaders for the second phase of its DREX pilot program. The newly announced partnership includes Banco Inter, Microsoft Brazil, 7COMm, and blockchain oracle provider Chainlink, with the primary focus on creating an advanced trade finance solution for cross-border agricultural commodity transactions.
Cross-Chain Technology at the Heart of Innovation
At the core of this initiative is Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which will serve as the backbone for enabling seamless interactions between Brazil’s DREX and other central bank digital currencies. The solution aims to modernize traditional trade finance processes by implementing tokenized Electronic Bills of Lading (eBoL) and leveraging supply chain data to automate payments to exporters throughout the shipping process.
Banking and Tech Giants Unite for Implementation
Banco Inter will spearhead the implementation efforts on the DREX platform within Brazil, while Microsoft provides essential cloud infrastructure support. Bruno Grossi, Head of Emerging Technologies at Banco Inter, described the project as a “transformative opportunity” for the Brazilian market. The technical implementation will be supported by 7COMm, focusing on delivering practical solutions for everyday business challenges.
This groundbreaking initiative represents a significant leap forward in the development of central bank digital currencies and their practical applications in international trade. With Chainlink’s CCIP facilitating over $16 trillion in transaction value to date, the consortium brings substantial expertise to this pioneering project in Brazil’s digital currency landscape.
