The Central Bank of Brazil (BCB) officially launched the second phase pilot program of the Central Bank digital currency Drex, focusing on cross-border trade of agricultural products and automation of supply chain processes, and linking blockchain technology with cloud infrastructure to improve global trade finance efficiency.

Electronic bill tokenization and payment settlement innovation to improve global trade and financial efficiency.

According to reports, the second phase pilot project of Drex has also brought together many technology and financial industry players, aiming to improve global trade finance efficiency using Blockchain technology, and introduce electronic Bill of Lading (eBOL) tokenization, while testing mechanisms such as synchronized Delivery versus Payment (DvP) and Payment versus Payment (PvP) to optimize Supply Chain payment processes and Interoperability among multiple platforms and currencies.

Microsoft and Chainlink, along with other Fintech companies, are participating to promote the practical application of Drex.

This pilot project brings together technology and financial industry players such as Microsoft, the oracle project Chainlink, the Brazilian digital bank Banco Inter, and the Brazilian technology company 7Comm, each performing its own role:

Microsoft: responsible for providing cloud infrastructure to ensure technical stability.

Chainlink: Through its Cross-Chain Interaction Message Transmission Protocol (CCIP), it achieves secure and transparent cross-platform transactions, while also supporting blockchain-based securities synchronous Delivery versus Payment (DvP) mechanism.

Banco Inter: As a digital bank native to Brazil, Banco Inter is responsible for the landing and promotion of Drex within Brazil.

7Comm: Provides Blockchain integration technical support to ensure the execution and professionalism of the pilot project.

Brazil is gradually promoting the application of Defi, with considerable potential in the future.

Previously, Drex's Phase 1 pilot program was mostly led by banks, mainly to transfer 'bank deposits' and 'bond tokenization' to blockchain for transaction management. There are also 13 confirmed cases available for testing, such as 'accounts receivable distribution,' 'international trade financing,' 'agricultural integrated enterprise assets,' and so on.

The Drex project aims to solve the "trilemma" of blockchain decentralization, privacy and programmability, and incorporate tokenization technology into banks' balance sheets. Over the next two years, the Drex pilot will expand to digital asset trading, including applications such as Liquidity pools for government bonds and international trade.

In addition, currently, encryption operators like XRP (Ripple) have entered Brazil and collaborated with local Cryptocurrency exchange Mercado Bitcoin to launch "end-to-end payment management solutions", helping local businesses to conduct international payment Settlement more quickly and inexpensively, and operate 24/7 all day.

(Ripple collaborates with the Brazilian exchange Mercado Bitcoin to optimize enterprise cross-border payments)

The article reports that the two-stage test of Brazil's Central Bank's digital currency Drex has been launched, jointly promoting automated trade settlement with Microsoft and chainlink. This was first reported in Chain News ABMedia.