🚨🚨🚨Digital real will not increase state control, says Drex coordinator 💩💩💩

During the Criptorama 2024 event, promoted by the Brazilian Cryptoeconomics Association (Abcripto), Drex coordinator at the Central Bank, Fabio Araujo, stated that the digital real, known as Drex, will not increase the Central Bank's control or visibility over the population's personal finances.

As Araujo emphasized, Drex's operation will be decentralized, conducted by several “nodes” managed by financial institutions participating in the pilot project.

According to a report by Valor Econômico, Araujo explained that Drex does not adopt a state-mandated know-your-customer (KYC) process for all users. According to him, the network operates with pseudo-anonymity and can be enhanced with zero-knowledge proof (ZKP) solutions. In practice, this would make it difficult to individually analyze transactions.

“The participants operate us and we do not perform KYC on anyone. Only the banks have access to this data, as is the case today,” he stated.

The Drex project is currently in its second phase, with registrations open for new consortiums until November 29. Araujo stressed the importance of the entry of new participants to further decentralize the system, which is currently made up mostly of large banks.

Source: CriptoFácil