Brazil's Central Bank Delays CBDC Project Drex Until 2025 Due To Inefficient Privacy Solutions

According to Odaily, the Central Bank of Brazil recently announced a delay in its Central Bank Digital Currency (CBDC) project, Drex, until 2025 due to inefficient privacy solutions. The new pilot phase will commence in July and conclude in 2025, allowing third parties to implement new features, including smart contracts. This move will expand the current scope of the pilot, encouraging private entities to propose new CBDC projects that exceed the original scope designed for Drex. Local media reports suggest that the primary motivation behind this measure is that the trial privacy solutions did not demonstrate the 'necessary maturity to ensure compliance with all requirements and legal issues related to the protection of citizens' privacy.' The delay aims to ensure that the CBDC project adheres to all legal requirements and adequately protects user privacy. The Central Bank's decision to delay the project indicates a cautious approach towards the implementation of digital currencies, prioritizing the protection of user data and privacy.