Banco Central do Brasil (BCB) initiated the second phase of its central bank digital currency (CBDC) pilot project, which will focus on a trade finance solution using blockchain oracles.
Reps from Brazil’s central bank announced the launch of the second phase of its Drex (CBDC) pilot, focusing on automating supply chain management and improving trade finance processes. Chainlink, Microsoft, Banco Inter, and 7Comm will act as tech partners for the project.
The second phase will involve tokenizing electronic bills of lading (eBoL) on the blockchain network and using supply chain data to initiate payments to exporters throughout the delivery process. The solution will demonstrate how blockchain-based trade finance can support settlement schemes such as delivery versus payment (DvP) and payment versus payment (PvP).
Partner roles in this phase:
- Chainlink will act as the operator of the Cross-Chain Interoperability Protocol (CCIP);
- Microsoft will provide access to the cloud infrastructure;
- 7Comm will responsible for the technical implementation of blockchain solutions;
- Banco Inter will act as the payment provider to process cross-border transactions using Drex.
The pilot project aims to automate settlements for agricultural commodity transactions involving participants from different countries, platforms, and currencies. The main goal is to improve efficiency, security, and transparency in international agricultural trade and global supply chains.
A month ago, the president of Banco Central do Brasil noted the multidimensional structure of the CBDC pilot, designed to address the “trilemma” of TradFi, namely low decentralization, privacy, and programmability. He also announced plans to test decentralized finance (DeFi) elements within the Drex pilot.
