#215: RIP Drex 🪦
Plus: Vitalik at ETHLatam; OKX Pay launches in Brazil; VASP regulations coming this week
Olá pessoal!
Welcome back to Brazil Crypto Report for the week of November 3-7. 2025.
Big week for crypto in Brazil! Vitalik Buterin spoke at ETHLatam in Sao Paulo last Thursday, where he presented on privacy to an eager room of 300+ hackers.
Vitalik doesn’t do selfies, so the best you can do is strategically position yourself in the same frame as him, as we did below 😁
Also this week: Michael Saylor spoke (dialing in from his yacht) at OranjeBTC’s Faria Lima focused investor event. We also had big news that the Central Bank has officially scrapped the blockchain component of Drex, and that it will be releasing long-awaited VASP regulations on Monday at 10:00am Brazil time.
👊 Jump into the BCR English language Telegram group if you’d like to continue the conversation
📰 Top Stories this Week
Central Bank unplugs blockchain portion of Drex
Vitalik Buterin talks privacy at ETH Latam in Sao Paulo
Pump.fun enables memecoin purchases via Pix
OKX debuts OKX Pay in Brazil
Central Bank to issue VASP regulations on November 10
Thanks for reading and have a great week!
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Central Bank formally shuts down Drex’s blockchain
After four years of development and experimentation, Brazil’s Central Bank announced the decommissioning the blockchain portion of its Drex platform.
The groundbreaking CBDC project had been beset by privacy, interoperability and scalability roadblocks during the first and second phases of its pilot program. The platform is being scrapped due to lack of usage and high maintenance costs.
In a meeting with consortia participants on November 4, Clarissa Souza of the bank’s technical team announced that Drex would be deactivated and that a new technological infrastructure would be developed - which may or may not use blockchain.
Fabio Araujo, coordinator of the project, confirmed the decision to Folha de S. Paulo.
“The solutions tested so far, despite being promising, do not yet present a level of maturity compatible with what is required by the services operated in the national financial system.”
The Hyperledger Besu-based blockchain platform will be shut down on Monday, November 10.
Recall that Drex was first announced in 2021 as the future of Brazilian digital currency. It mobilized banks, fintechs, and technology companies in a race to test tokenization and instant settlement use cases.
In a note to Valor, the Central Bank said that Drex will continue, but its focus and tech stack will be much different than the original CBDC vision. It affirmed that asset tokenization remains the long term goal:
“The Drex Project remains a priority and strategic for the Central Bank to be the basis for offering more efficient, agile and secure financial services…The tokenization of assets on the platform, with the use of settlement currency offered by the Central Bank, remains the ultimate goal of the Project.”
Febraban, the association of Brazil’s banks, said that the project remains in tact, although in a different form. It told Valor in a statement:
“Febraban remains firmly integrated into the support group for the creation of the Drex platform and continues working with the Technical Cooperation Agreement (ACT), which remains in progress.”
Ground-up redesign for Phase 3
Phase 3 of the Drex pilot will continue, however, using to-be-determined technology with a to-be-determined scope. For the new, yet to be defined infrastructure, the bank will start off by defining its target use cases before determining which technology it will use to build the system from scratch.
Araujo said that this phase will focus on services that broaden access to credit, increase the efficiency of collateral usage within the financial system and allow new types of assets to be used in credit operations.
“The expression digital currency, in fact, does not capture the full extent of the Drex initiative, since it refers to payments, which is not its central point.”
Not a big surprise
The news isn’t a huge surprise given recent announcements from the bank, namely when it stated at Blockchain Rio in August that Drex would no longer use blockchain and the scope would pivot to lien reconciliation.
Carlos Netto, CEO of Matera, said that the move was the correct decision, as it opens the door for the private sector to step in and fill the void and create a Brazilian stablecoin. Speaking to Valor, he said
“When the Central Bank created PIX, it made it clear that it had been waiting for almost ten years for the private sector to do something. In the vacuum, it went there and did it. Are we in the private sector going to wait for Drex to appear again someday?”
Marlyson Silva, president of Transfero, said that the project had lost clarity and purpose over time:
“Drex ended up becoming an emblematic case of how scopes that expand too much (and technologies that do not prove adequate) can compromise delivery and real adoption.”
John Delaney, CEO of Crown, argued that the project may have been a victim of its own ambition, as it was trying to solve for several complex problems at once:
“Drex always sparked debates about its most appropriate role: at times, it resembled a retail CBDC; at others, an interbank settlement infrastructure; and there was also potential for applications such as the registration of collateral on real-world assets. All these objectives are legitimate and complex—it’s difficult to bring them all together in a single system.”
Passing the baton to the private sector
The most noteworthy implication of scuttling Drex is that it officially passes the stablecoin baton to the private sector.
Fabricio Tota of Mercado Bitcoin and BRL1 said that redirecting Drex projects to public blockchains will make stablecoins “the natural settlement path for tokens denominated in reais.”
Hector Fardin, CEO of Avenia, argued that the role of private real-denominated stablecoins and infrastructure will be increasingly important from here on out.
Drex’s Legacy
While the project didn’t achieve its attended results, it has made a significant impact on advancing tokenization know-how and initiatives in Brazil’s financial system.
Rodrigoh Henriques, head of innovation at Fenasbac - which ran the early LIFT Challenges and accelerators that explored Drex use cases, explained:
“After four and a half years of Drex development, even if it were completely canceled, it has already made a big difference in the Brazilian market.”
Henrique Teixeira, director at tokenization company Hamsa, said the Drex shutdown was a “cold shower” for those devoted significant time and resources to working on the platform, but argued that we will see more banks issuing their own stablecoins now.
Federal Deputy and outspoken Drex opponent Julia Zanatta said in a social media statement:
“WE WON this battle and buried DREX…But the fight continues. Because they will change their discourse and sell something “prettier.” I will be attentive to every step. We will not allow a digital currency centralized by the Central Bank”
Economist Fernando Ulrich tweeted “Now it’s just a matter of time to see which monstrosity will come in its place”.
CoinTelegraph Brasil Portal do Bitcoin Portal do Bitcoin Valor Valor Livecoins Exame
Vitalik Buterin talks privacy at ETH Latam in Sao Paulo
The Ethereum co-founder made a brief pit stop in Sao Paulo en route to Devconnect in Argentina, where he implored builders to help make privacy a default feature on Ethereum.
He spoke to participants in the ETHLatam hackathon, where he delivered a talk discussing the history of internet privacy and ongoing efforts within the Ethereum ecosystem like Tornado Cash, Railgun and Privacy Pools that advance privacy in the current time. He also took questions from the audience for 30 minutes.
“The reason privacy is so important is that it is, essentially, a form of freedom. Privacy is necessary to enable various basic mechanisms of society—even simple things like communication and collaboration. It’s not an abstraction, like decentralization or credible neutrality. It’s a concrete benefit, a fundamental human right. And it’s something we can finally achieve in today’s world. So, I believe we should do it.”
In response to an audience question about Drex being shut down due to privacy scaling issues, he argued that blockchain privacy technology is, in fact, ready for primetime:
“The ability to make private payments was something that, two years ago, wasn’t really ready. But I would say that today it is. So it all depends on what specific properties they [the Central Bank of Brazil] are looking for, what types of applications they are trying to use, and in what aspects the current platforms are insufficient.”
“We need to look at the details. The question is: is the Central Bank dissatisfied with existing solutions because of fundamental properties of these technologies? Or simply because they were not yet mature?”
Portal do Bitcoin Portal do Bitcoin BlockNews
Pump.fun enables memecoin purchases via Pix
Solana-based memecoin launchpad Pump.fun has integrated Pix through MoonPay to enable Brazilian users to buy memecoins directly in-app using BRL, rather than first purchasing SOL or other tokens.
The MoonPay partnership enables a number of other onramps such as Revolut, Venmo and PayPal
CoinTelegraph Brasil Portal do Bitcoin
OKX debuts OKX Pay in Brazil
OKX has chosen Brazil to launch OKX Pay, its new global payment product.
The card features a 10% annual return on new assets deposited, no conversion fee from BRL to stablecoins, no fees on payments and no IOF (Brazil’s financial transactions tax).
OKX estimates that the tool eliminates up to US$39 in fees and taxes compared to traditional remittance services on a US$1,000 transaction.
Hong Fang, president of OKX, said:
Brazil is the first country in the world to launch this card because we saw a specific and relevant use for it here.
The product is built on OKX’s X Layer blockchain and allows Brazilian users to instantly convert reals to dollar stablecoins via Pix with an annual yield of 10% (calculated daily and paid weekly). Users can also send stablecoins instantly inside or outside the country.
Guilherme Sacamone, CEO of OKX Brasil, said:
“With OKX Pay and OKX Card, we are placing stablecoins at the center of Brazilians’ daily finances, facilitating dollarization, saving, earning, and spending, while maintaining total control over their own resources.”
“Our goal is to offer Brazilians practical and economical access to the global economy, without hidden fees or conversion costs—making crypto use simple, secure, and accessible to everyone.”
Speaking to the 10% annual yield on stablecoin deposits, Sacamone explained:
“The 10% comes from OKX Treasury as an incentive to use USDG (issued by Paxos) within Pay. Even if the dollar does not appreciate, the yield is paid on the balance held in the stablecoin.”
OK Pay offers 5% yield on USDT and USDC stablecoins.
CoinTelegraph Brasil Valor Exame
Central Bank to issue VASP regulations on November 10
The authority will deliver its much-anticipated VASP regulatory framework on Monday, November 10 at 10:00am Brazil time.
The announcement will be made during a livestreamed event on the bank’s YouTube channel
We’ll be pushing out a podcast episode next week to discuss what this means for Brazil’s market and next steps.
🗞Brazil Crypto News Rundown
📈 Markets
Nubank is now Brazil’s most valuable company, surpassing Petrobras with a market cap of approximately US$ 76–77 billion, according to Companies Market Cap. (CoinTelegraph Brasil)
Brazilian tokenization firm Liqi has launched a new US-backed, dollar-denominated investment product for local investors, structured entirely in USDC stablecoin and offering 8% annual returns plus U.S. dollar exposure through tokenized receivables. (Valor)
Mercado Bitcoin structured a tokenized investment offering to fund the initial funding round of Jumpad, a Brazilian artificial intelligence startup focused on the corporate environment founded by MB co-founder Mauricio Chamati. (CoinTelegraph Brasil)
Brazilian fintech Méliuz reported a R$ 14.2 million Q3 profit - up 61% year-on-year - excluding the impact of its Bitcoin holdings, which have grown to over 600 BTC and delivered a 920% increase in yield compared with the first half of 2025. (Portal do Bitcoin) (Valor)
Speaking at Satsconf in Sao Paulo, economist Fernando Ulrich argued that gold has failed as a monetary standard and predicted that bitcoin will become the new global reserve asset, citing structural weaknesses in central-bank policies and rising confidence in programmable digital money. (Portal do Bitcoin)
Speaking at the OranjeBTC event on Faria Lima, Meliuz CEO Gabriel Loures and Oranje CEO Gui Gomes argued that the bitcoin treasury company model is the seed of a new financial system. Gomes said:
“We are seeing the birth of a new form of business that should be the future. The large banks and institutions of tomorrow will be built on this [Bitcoin] standard.” (Portal do Bitcoin)
📲 Adoption
Banco Inter and Chainlink Labs announced the completion of a pilot linking Brazil’s Central Bank and the Hong Kong Monetary Authority to facilitate cross-border commodity payments using digital currencies and smart contracts. It was the first time a blockchain-based title registry and a cross-chain payments infrastructure were connected in a single, automated workflow. (CoinTelegraph Brasil) (Portal do Bitcoin)
The crypto-payments platform Oobit is entering Brazil with a local office and payments infrastructure allowing users to pay directly from non-custodial wallets. (BlockNews)
Brazil’s government contracted a blockchain-analysis tool called for Iafis Systems do Brasil Ltda for R$ 8.6 million to monitor Bitcoin and other cryptocurrency transactions across multiple networks. (CoinTelegraph Brasil)
A Satsconf panel of federal deputies including Luiz Philippe de Orleans e Bragança and Eros Biondini lauded bitcoin and its future role in society. Bragança said:
“Governments and all institutions that were created to control society are losing their power of persuasion and intervention. Bitcoin is the ultimate symbol of this trend.” (Portal do Bitcoin)
Tangem has launched Tangem Pay, a Visa-powered card that lets users spend USDC on the Polygon network directly from self-custody wallets. Brazil is included among the 38 supported jurisdictions. (CoinTelegraph Brasil)
The Rede Blockchain Brasil (Brazilian Blockchain Network) is set to publish its whitepaper and host a hands-on workshop for smart-contract development in Brasília on November 26 2025. (Livecoins)
Brazil’s fintech Avenia is joining Circle’s new layer-1 blockchain Arc as the issuer of the stablecoin BRLA, making Brazil one of the first countries with native currency-token issuance on the platform. (CoinTelegraph Brasil)
Justoken, the company behind Agrotoken, has launched T&S Explorer, a platform that combines blockchain, satellites, and artificial intelligence to track the origin and environmental performance of agro-industrial products. Agribusiness giant Bunge is one of the first public cases of the technology, tracking more than 375,000 tons of deforestation-free soy. (CoinTelegraph Brasil)
Prediction-market platform Polymarket currently assigns a 59% probability to Lula winning Brazil’s next presidential election, as of the latest available quote. (Livecoins)
Rocelo Lopes, founder of Truther and SmartPay, argued that stablecoins are a Trojan Horse that will push wider adoption of bitcoin. During an interview on the BitNada YouTube channel, he said:
“The world’s largest market has created a regulatory framework for stablecoins, and that brings peace of mind. But everyone’s destiny will be bitcoin, there is no other way…When a government wants to intervene, it will intervene. If the authority wants to freeze, it will freeze. This doesn’t happen with Bitcoin. In Bitcoin, nobody is in charge.” (CoinTelegraph Brasil)
🏛 Policy, Regulation and Enforcement
Stablecoins will be a major regulatory priority for the Central Bank next year, according to Nagel Lisânias, division head of the Regulatory Department at the regulator. Speaking at the Lumx conference in Sao Paulo, he said:
“Stablecoins, I think it will be a major topic next year, at least for the regulator. We need to advance stablecoins, advance in an appropriate taxonomy of virtual assets, digital assets, where totalization comes in, even in light of these discussions we have with other regulators, the Federal Revenue Service itself, it has the CARF, it comes with reference, we have 14478, we have to have an organized, harmonized vision, so as not to have confusion regarding the application of regulations.”
Finance Minister Fernando Haddad revealed that the Receita Federal, Brazil’s tax authority, is preparing new norms to strengthen tracking of crypto transactions and identify the real holders of digital assets, as part of an offensive against the “financial arm” of crime syndicates. (Portal do Bitcoin)
A witness in a Sao Paulo investigation into Worldcoin confirmed that Tools for Humanity paid local operators per iris scan. A contractor said he received 268,000 WLD tokens for running collection points in the city, worth roughly R$1 million today (they would have been worth ~R$16.6M at the token’s peak). (Portal do Bitcoin)
The Receita Federal will issue a new regulatory instruction by year-end that tightens oversight on stablecoins, cryptocurrency transactions and illegal gambling operations, aiming to improve traceability and collect more IOF. Agency secretary Robinson Barreirinhas told Globo in an interview:
“We are closing all the doors we know of.” (CoinTelegraph Brasil) (Livecoins)
Brazil’s Chamber of Deputies approved a comprehensive asset regularization bill which includes virtual assets in its general rules with a proposed aggressive 15% tax on capital gains, plus a 100% penalty on amounts owed to the Federal Revenue Service. (CoinTelegraph Brasil)
Federal Deputy Júlia Zanatta has proposed a law that would allowing citizens to legalize undeclared cryptocurrencies in Brazil or abroad by paying a 5% flat tax on their market value - offering a lower-cost alternative to existing asset-repatriation programs. (CoinTelegraph Brasil) (Portal do Bitcoin) (Livecoins)
The Lula government has submitted legislation to Congress that seeks to change penal and procedural laws so that cryptocurrencies seized from criminal organisations can be immediately liquidated into Brazilian reais. (Livecoins)
The CVM, Brazil’s securities regulator, issued a public alert against crypto-asset company Sigma Infinity Crypto and imposed a daily fine of R$ 100,000 for failing to comply with its order to cease unregistered securities offerings. (Livecoins)
The Federal Police arrested a Colombian suspect who allegedly used cryptocurrency networks to transfer funds out of Brazil as part of a money-laundering scheme. (Livecoins)