Brazil: Implemented Order amending the Central Bank Regulation of the Drex Pilot Project

On 10 October 2024, the Central Bank of Brazil adopted an order amending the regulation of the Executive Management Committee (CEG) of the Drex Pilot Project through Resolution BCB No. 423/2024. The amendment, effective immediately upon its publication, introduces changes to the operational framework and selection criteria for participants in the Drex Pilot, an initiative aimed at exploring the potential of digital payment systems and other digital financial infrastructures. The revised regulation outlines the procedures for the submission of business case proposals for the second phase of the pilot, inviting entities from the financial market to participate. These entities are expected to demonstrate their capability to test proposed business models involving transactions of issuance or transfer of assets and to simulate financial flows arising from trading events. Lastly, the Amendment also sets the period from 14 October to 29 November 2024 for receiving application proposals.