Brazil’s central bank has been working on a digital real project for several years, beginning a first pilot phase in 2023 testing privacy and programmability functionalities through the implementation of a specific use case. Now, it has whittled down proposals for a second phase from 42 to 13, using the infrastructure already created to test applications developed by private sector institutions. The proposal from the Chainlink consortium leverages blockchain technology and oracles to automate supply chain management and improve trade finance processes. The goal of the pilot is to demonstrate the automated settlement of agricultural commodity transactions across borders, across platforms, and via different currencies. As part of this initiative, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will enable connections between the Drex of Brazil Central Bank and a foreign central bank, ensuring that transactions are compatible and settled efficiently. The pilot will involve tokenizing an Electronic Bill of Lading (eBoL) on-chain and using supply chain data to trigger payments to exporters throughout the shipping process. Bruno Grossi, head of emerging technologies, at Banco Inter, says: "Banco Inter sees Phase 2 of the Drex CBDC project as an exciting moment for Brazil. We see collaborating in this project with technology leaders like Microsoft and Chainlink Labs as a transformative opportunity to expand market reach and improve the health of the Brazilian market." Other applications to reach second-round trials include Visa Nubank and brokerage XP on the use of a CBDC for "optimisation of the foreign exchange market", Google is working with financial services firms on credit collateralised in public securities, while Santander is undertaking experiments on transactions for cars.