The CBDC that wasn't: Brazil's Drex and the quiet death of a digital real in Latin America

This paper analyzes the evolution of Brazil's Drex, its official digital currency project. Initially conceived as a blockchain-based CBDC, the project was reportedly suspended in its original form by 2025. Media reports indicate it abandoned DLT to become a tokenization ecosystem, with an official stating it is “not a CBDC”. This article argues the transition highlights the fundamental tension between technological innovation and monetary sovereignty. We argue this shift prioritized hierarchical state control and situate Drex as a “third way” between centralized surveillance and private innovation. Drex's unfinished legacy provides crucial insights into the institutional future of money.