DREX, Brazil’s new digital currency, brings with it a series of implications and risks that deserve attention. Although it promotes agility in transactions and the possibility of financial inclusion, there are serious concerns related to its implementation.
1. Tax Discount on Transactions: With DREX, transactions can be subject to automatic taxes. This means that when conducting financial transactions, a portion of the amount can be immediately discounted for tax purposes. This transparency can be beneficial for the government, but it poses a challenge for those seeking to avoid the tax burden, since transaction traceability is an essential component of the technology.
2. Blocking of Amounts: There is a possibility that amounts may be blocked in digital accounts, especially in situations involving tax or financial investigations. This may occur without prior notice, directly affecting users' access to their resources.
3. Political Persecution: DREX also raises concerns about users’ privacy and security. There are fears that individuals who do not align with government norms could face surveillance or repression, especially if their digital transactions are closely tracked.
4. Validity of Money: By relying solely on DREX for transactions, users risk losing the freedom to use other financial means, creating a system where the value of currency is dictated by government guidelines.
5. Obligation to Spend at Specific Establishments: There is a possibility that the use of DREX may be limited to certain establishments or sectors, reducing the consumer’s freedom to choose where to spend their money. This may create a dependency on companies operating within the DREX system, restricting competition and innovation.
These issues reveal that while DREX may offer benefits in terms of efficiency and security, it also imposes a new structure of control over personal finances, which could be seen as a form of government surveillance. It is important that citizens are aware of these risks before committing to this new digital currency.
For more information on DREX and its implications, you can check out my other article on the subject HERE
