cryptonews.net
The Central Bank of Brazil recently announced that it would delay the pilot project for Drex, Brazil’s central bank digital currency (CBDC), until 2025 due to the inefficiency of the privacy solutions introduced for the project. The new pilot phase, which will begin in July and end in 2025, will allow third parties to implement new features, including smart contracts.
This would expand the current scope of the pilot, encouraging private enterprises to propose new CBDC projects beyond what the central bank initially developed for Drex. The main motivation for this measure was that the privacy solutions tried did not have the necessary maturity to ensure compliance with all the requirements and legal issues associated with maintaining citizen privacy.
In addition, the bank confirmed that tests involving the general population will only be carried out when there is confidence in the ability to meet privacy requirements. Drex is being developed as part of a blockchain system backed by Hyperledger Besu, which makes it difficult for standard transactions to comply with country banking and tax regulations.
Image: CryptoRank