Brazilian Congresswoman Sounds Alarm on Drex CBDC Risks, Rejects Cash Elimination Bill

Julia Zanatta, a Brazilian congresswoman, has raised concerns about the effects of implementing drex, the Brazilian CBDC, on the lives of citizens. Zanatta emphasized that drex, if not properly implemented, might lead to the prohibition of physical money and proposed a ballot for its final implementation.

Brazilian Congresswoman Warns About the End of Physical Money at the Hands of Drex

Julia Zanatta, a Brazilian Congresswoman, alerted about the possible end of physical money as the country advances in implementing drex, the national central bank digital currency (CBDC). In a recent interview, Zanatta explained that she is already planning to establish several backstops to stop this from happening, helping Brazilians maintain their current economic freedom.

Zanatta recently presented a bill to fight an already introduced bill that seeks to forbid the use of cash in Brazil, proposing to rely only on electronic transactions, and drex. The bill, introduced in 2020, would phase out money printing starting in 2025.

Zanatta opposes this project, stating that drex usage should be voluntary and not mandatory because it might become a tool for exerting control over Brazilians. Talking to Livecoins, Zanatta stated that only relying on these electronic channels presents different risks, including “social control in our lives, lack of privacy, ease of taxing your entire life without any option, political persecution and people who do not know how to manipulate technology making serious financial mistakes.”

Furthermore, Zanatta explained that leveraging Drex should be voluntary and not mandatory. She also called the general audience to heighten its awareness of these subjects, as these tools might be used to limit individual freedom.

Zannatta argues that, as nobody approved the introduction of drex, she would propose a general ballot for the citizens to decide on the project’s future, given that a change of this scope should be at least discussed in Congress.

The pilot for drex is currently in its second phase, facing delays due to the lack of an effective implementation to protect the privacy of its potential users.

Read more: Brazilian CBDC Pilot Postponed to 2025 Due to Inefficiency of Privacy Solutions