Brazil finance minister says CBDC will boost transparency

Brazil’s finance minister Fernando Haddad stated that Drex, the country’s central bank digital currency (CBDC), is designed to enhance transparency and streamline financial transactions.

Haddad dismissed concerns that the government would use Drex to monitor or control individual payments.

“It has transparency, it doesn’t have control, that’s not what it’s for,” Haddad said during a podcast interview.

The remarks come in response to criticism from citizens and lawmakers such as Julia Zanatta, who warned last year that a digital real could replace physical money.

Haddad stressed that Drex’s purpose is to improve efficiency in the financial system, not to act as a surveillance tool.

He noted that Drex could provide visibility in specific flows, such as tax breaks, helping create a fairer and more efficient system.

Haddad also criticised Brazil’s high transaction costs, pointing to the number of intermediaries and fees involved in the current system.

“There’s always someone in the way, there’s always a toll. Right now, we’ve passed a law to regulate competition from big tech, because they charge tolls for everything,” he said.

He acknowledged challenges in the project, including lessons from the Pix hack and the central bank’s response.

Drex is currently in its pilot stage, expected to conclude in 2026, with a simplified design dropping its blockchain element.

Authorities estimate that Drex could be fully implemented and accessible to Brazilian citizens by 2030.