Applying Design Principles to Brazilian Central Bank Digital Currency

Central Bank Digital Currencies (CBDCs) represent a digital form of a country's fiat currency, issued and guaranteed by the monetary authority, differentiating themselves from private cryptocurrencies through their centralization and government regulation (Ozili, 2023). The growing global interest in CBDCs, driven by the rise of cryptocurrencies and the need to modernize financial systems, aims to offer greater accessibility, efficiency, and security and preserve the public nature of money (Ghymers, 2024). In this context, Brazil is advancing with Drex, its official digital currency issued by the Brazilian Central Bank. It is designed to run in a fully electronic environment as a digital extension of the Real (national currency). Drex was designed to operate on a blockchain platform and seeks to drive innovation in the National Financial System (Banco Central do Brasil, 2025). The definition and application of design principles are important for the success of these currencies, as they guide critical decisions in terms of technology, privacy, interoperability, and issuance mechanisms (Jorgensen & Hays, 2022). This research aims to investigate what design principles are being applied for the implementation of CBDCs, with a specific focus on the Brazilian experience through the CDBC Drex. The investigation aims to broaden the understanding of how these principles can influence the development and adoption of digital monetary innovations. To this end, we performed a qualitative single-case study of the Brazilian CBDC. Data collection was carried out through documentary analysis, focusing on official sources from the Brazilian Central Bank, including informational materials and the report from the first phase of the Drex Pilot project (Banco Central do Brasil, 2025). The results reveal that Drex adopts a hybrid and innovative architecture with Distributed Ledger Technology, articulating public and private actors and enabling functionalities such as smart contracts and traceability. The project demonstrates a commitment to interoperability, seeking to integrate with the existing national financial ecosystem, and strives for a balance between privacy and traceability, in compliance with the General Data Protection Law and banking secrecy (Banco Central do Brasil, 2025). The main considerations point to the importance of systematizing CBDC design principles, comparing them with concrete initiatives like Drex, which offers practical insights for policymakers and developers. The study highlights approaches to accessibility, efficiency, security, and privacy, identifying the best practices and challenges that can assist other national initiatives, especially in developing countries.