Brazilian Congresswoman Warns About the Risks of Drex CBDC and Rejects Cash Elimination Bill

Brazilian Congresswoman Julia Zanatta has raised alarm over the potential risks of Drex, Brazil's central bank digital currency (CBDC), and its effects on the financial freedom of Brazilian citizens. In a recent interview, Zanatta explained her concerns about the possible end of physical money as the country moves forward with the implementation of Drex.

Zanatta emphasized that, if not carefully managed, Drex could lead to the prohibition of cash, fundamentally altering the way people conduct financial transactions. She also voiced her opposition to a bill introduced in 2020 that seeks to phase out the use of physical money by 2025 in favor of electronic transactions and Drex. This bill, which Zanatta is actively fighting against, would enforce the shift to digital payments and eliminate traditional forms of cash.

In her statements, Zanatta argued that Drex should not be mandatory. She warned that making Drex compulsory could give the government a tool to control citizens' financial activities. She cited various risks of a fully digital financial system, including loss of privacy, potential political persecution, and social control over individuals' lives. Additionally, Zanatta expressed concern that many people could be left behind in a fully digital economy, particularly those who struggle with technology and might make financial errors as a result.

To address these concerns, Zanatta has proposed that Drex should be adopted voluntarily. She also called for a national ballot, where the citizens of Brazil could vote on whether they support the continued development and implementation of Drex. Zanatta argued that such a monumental change in the country’s financial system should be subject to public discussion and approval.

The implementation of Drex is currently in its second phase, but it has faced delays. One of the main challenges has been the difficulty in ensuring the privacy and security of users' data, an issue that remains unresolved.

Zanatta’s opposition to the mandatory use of Drex highlights the ongoing debate over the future of digital currencies and their potential impact on individual freedoms and privacy. As Brazil continues to explore the implications of CBDCs, Zanatta’s efforts to protect citizens’ rights will likely remain a focal point in the national conversation.