The Central Bank of Brazil is partnering with Chainlink, Microsoft, and others to develop DREX, a new CBDC. DREX will specialize in cross-border trade rather than everyday use, incorporating artificial intelligence (AI) oracle technology.

Brazil has made several crypto advancements this year, like the world’s first spot Solana ETF.

Brazil’s New DREX CBDC

According to a recent press release from Chainlink, the Central Bank of Brazil (BCB) has selected the company alongside Microsoft Brazil, digital banking firm Banco Inter, and 7COMm to continue developing the country’s new CBDC. The BCB has been working on this new asset, DREX, and is preparing to enter the second phase of testing.

“We look forward to… demonstrating how the adoption of blockchain technology combined with Chainlink’s interoperability protocol CCIP can transform trade finance. Chainlink CCIP… will help showcase what tokenized assets can do at scale for this key CBDC use case in Brazil,” said Angela Walker, Global Head of Banking and Capital Markets at Chainlink.

In essence, DREX’s designers will focus on trade finance, especially cross-border agricultural transactions. DREX, in other words, will incorporate AI supply chain management and blockchain data that would not be relevant to everyday customers. China, another large CBDC user, has also employed specialized products for this use case.

Brazil has made several important strides in crypto adoption this year. For example, it launched the world’s first Solana spot ETF in August, a model for other countries to emulate.

Additionally, the BCB set the ambitious goal of finalizing comprehensive crypto regulations within a year.

DREX will not be the first trade-focused CBDC, but it will have new features. Phase two of DREX development will use Chainlink CCIP to conduct interoperability tests, ensuring that the BCB and foreign banks can conduct transactions smoothly.

It will also experiment with tokenizing Bills of Lading and triggering exporter payments via blockchain. These and other small-scale tests will determine Brazil’s ability to use DREX en masse.

Ultimately, this pilot program will ensure that DREX’s functions are ready for wider use. The press release does not specify plans for the next phase other than a wider use of cross-border payments.

Yet, Brazil has set a very ambitious project with DREX, which might require extensive tests. If successful, however, it would be a major advancement for CBDCs in Latin America.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.

The OCC approved options trading for the Bitcoin ETF, and this new market is surging. In one day, BlackRock’s IBIT ETF saw over $425 million in options trades.

Traders have been overwhelmingly bullish in their predictions, with over $6 million in bets that Bitcoin’s value will double in one month.

BlackRock’s Bitcoin ETF Options

Since the OCC approved options trading for the Bitcoin ETF, this new investment opportunity has been booming. For example, Grayscale already filed for a new covered call, Bitcoin ETF. According to Bloomberg ETF analyst Eric Balchunas, however, the biggest winner has been BlackRock’s IBIT.

“A few hundred million so far in options volume on IBIT (a ton for Day One). Here’s a rank of the contracts by volume, it’s almost all calls. Seems very bullish, especially the December 20 C100, which is basically betting price of BTC will double in the next month,” said Balchunas.

These Bitcoin options trades total well over $425 million and counting, with inflows still coming in. These figures are very impressive on their own, but Balchunas further noted that the Put Call ratio is .17. This represents the ratio of bearish to bullish predictions, and signifies that these traders are betting overwhelmingly in favor of Bitcoin’s rise.

By the mid-afternoon, IBIT’s total trade volume crossed the $3 billion threshold. Even one week prior, $1 billion was called a strong showing.

These options trades have turbocharged the leading Bitcoin ETF, and other issuers like Grayscale have barely entered the market.

Meanwhile, the spot Bitcoin ETFs are also making a stride. According to data from Farside Investors, on Tuesday, the Bitcoin ETFs recorded an inflow of $816.4 million as BTC hit a new all-time high.

These massive new inflows have only facilitated BlackRock’s continued Bitcoin investment. According to data from ETF analyst Shaun Edmondson, the US issuers collectively purchased over 2,800 BTC since Monday.

BlackRock alone purchased more than 1,000 BTC. Moreover, ETF issuers now hold over 5% of the total Bitcoin supply.