Brazil CBDC pilot delayed to 2025 due to inefficient privacy solutions

Brazil’s central bank recently said that the pilot of its central bank digital currency (CBDC) project, Drex, was postponed until 2025 due to the inefficiency of the privacy solutions provided. The new pilot phase will begin in July and end in 2025, when third parties will be allowed to implement new features, including smart contracts. This will expand the scope of the current pilot and push private entities to propose new CBDC projects that go beyond the scope of what the central bank originally designed for Drex. According to local media reports, the main motivation behind this measure is that the privacy solutions piloted did not present the “necessary maturity to guarantee compliance with all requirements and legal issues related to the protection of citizens’ privacy.” (Bitcoin.com)