Phase 1 of Brazil's ambitious Drex CBDC pilot is in the books. The project has proven successful thus far, but privacy and scalability challenges remain - prompting the Central Bank to conclude that a "major adaptation" is required for Drex to become a core piece of Brazil's financial infrastructure.

In this episode, Marcos Viriato of Parfin, Leandro Pereira of Nuclea, Ricardo Paixão of CRIA (and the Brazilian Congress), join host Aaron Stanley to explore the findings of an extensive new report published by the bank to conclude Phase 1.

They provide an insider perspective on the road ahead for Drex as Brazil continues its push towards a tokenized financial system.

00:03 - Introduction and market expectations

03:06 - DREX project explanation and objectives

05:36 - Analysis of the Central Bank's technical report

09:26 - The privacy challenge explained

13:56 - The Drex Trilemma

17:25 - Scalability considerations

22:24 - Discussion of Hyperledger Besu infrastructure

27:47 - Sponsor break

29:20 - Second phase pilot and resource constraints

36:14 - Current use cases and integration challenges

48:00 - Market outlook and tokenization beyond DREX

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