Julia Zanatta, a Brazilian congresswoman, has voiced concerns regarding the impact of the implementation of drex, the Brazilian CBDC, on the lives of citizens. Zanatta has highlighted the possibility of the eventual elimination of physical currency and has proposed a referendum for the final approval of drex.
Brazilian Congresswoman Raises Alarm Over Potential Elimination of Physical Currency with Drex
Julia Zanatta, a member of the Brazilian Congress, has sounded the alarm about the potential disappearance of physical money as the country moves forward with the introduction of drex, the national central bank digital currency (CBDC). In a recent statement, Zanatta revealed her plans to introduce measures to prevent this scenario, safeguarding the economic freedom of Brazilians.
Zanatta recently put forth a proposal to counter a bill that aims to phase out the use of cash in Brazil, advocating for a shift towards solely electronic transactions and the adoption of drex. The bill, which was tabled in 2020, sets a timeline for phasing out cash starting in 2025.
Expressing her opposition to this initiative, Zanatta emphasized that the utilization of drex should be voluntary rather than compulsory, as it could potentially be utilized as a tool for exerting control over the populace. Speaking to Livecoins, Zanatta cautioned about the risks associated with exclusively relying on electronic means, including concerns about “social surveillance, erosion of privacy, heightened taxation without consent, political persecution, and financial mismanagement by individuals unfamiliar with technology.”
Moreover, Zanatta underscored the importance of ensuring that the use of Drex remains voluntary, urging the public to be vigilant and informed about these developments that could impact individual freedoms.
Zannatta argued that since the introduction of drex did not receive public approval, she intends to propose a nationwide referendum for citizens to determine the fate of the project, asserting that a decision of such magnitude should be subject to deliberation in Congress.
The drex pilot program is currently in its second phase but has encountered delays due to challenges in implementing effective privacy safeguards for potential users.
For more information: Brazilian CBDC Pilot Postponed to 2025 Due to Inefficiency of Privacy Solutions