Brazil’s payments ecosystem is evolving beyond the rapid rise of Pix as policymakers and market participants prepare for a multi‑layered future. Sofia Düesberg, General Manager of Conduit in Brazil, argued on the Canaltech podcast that Drex, the central bank digital currency being developed by the Banco Central, stablecoins and Pix will operate in parallel, each serving distinct technical and commercial needs.
Drex Pix stablecoins working together
Düesberg described Drex as a wholesale CBDC focused on automated communication between the central bank and financial institutions through smart contracts. The initial design does not foresee direct retail access. By contrast, stablecoins are blockchain‑based assets pegged one to one with major currencies such as the US dollar or the euro. Pix remains the instant domestic payment rail prized by consumers and businesses for day‑to‑day transfers.
According to the discussion, the different instruments will not replace one another. Pix will continue to provide rapid domestic payments. Stablecoins will serve specific cross‑border use cases by reducing the number of intermediaries, which today lengthen and complicate international transfers. The result could be settlement times measured in hours or a single day rather than several days under traditional correspondent banking arrangements.
The scale of these systems underlines their importance. Pix moved R$26 trillion in 2024. In the cryptocurrency market, stablecoins accounted for R$230 billion of transactions last year, representing roughly 90% of crypto volume in Brazil. Those figures illustrate why regulators and industry players are developing playbooks for coexistence and integration.
Regulatory frameworks vary by jurisdiction. Düesberg noted that the United States and the European Union concentrate on supervising stablecoin issuers, as seen in the EU’s Markets in Crypto‑Assets regulation. In Brazil, the Banco Central has advanced regulation of virtual asset service providers, or VASPs, and the products they offer, seeking to bring clarity while protecting users and market stability.
Market participants expect the technical integration to happen mostly in the back end of financial institutions. Banken and payment processors could route transactions across Drex, traditional rails such as Pix, and stablecoin networks depending on cost, speed and the counterparty involved. For the end user, that would translate into a simpler experience: a single payment instruction that is routed and settled across multiple infrastructures without extra steps.
Düesberg emphasised the complementary nature of the technologies. She said: “We do not see stablecoins replacing Pix. Pix will continue to serve domestic instant payments. What stablecoins add, together with Pix, is a clear use case for payments abroad.”
As Brazil prepares for this multi‑rail future, the challenges will be technical and regulatory. Interoperability standards, legal frameworks for smart contracts and clear rules for custodianship and issuer liability will be necessary. If done well, integration of Drex, Pix and stablecoins could reduce costs, speed remittances and reinforce Brazil’s role as an innovator in digital payments.
For readers who want the full discussion, the episode is available on the Canaltech podcast.
Key Takeaways:
- Brazil aims to integrate Drex, Pix and stablecoins to streamline payments and cut cross‑border settlement times.
- Pix handled R$26 trillion in 2024 while stablecoins accounted for R$230 billion, underlining growing digital activity.
- Drex will operate as a central bank digital currency for interbank contracts while stablecoins reduce intermediaries in international transfers.
- Regulatory approaches differ globally, and Brazil focuses on VASP rules as infrastructure moves to integrated back‑end systems.
