The pilot project of Brazil's central bank digital currency Drex has encountered obstacles due to privacy issues

ChainCatcher news, according to BTCTN, the pilot project of Brazil's central bank digital currency DREX has encountered significant obstacles. An official report indicates that the implementation of this central bank digital currency lacks a key element: privacy protection.

Although three potential solutions were tested, none were able to meet the requirements of balancing transaction privacy with regulatory needs. While these technologies can hide transaction details from third parties, they also hinder regulatory agencies' monitoring of fraud and compliance.

The Central Bank of Brazil emphasizes that if transactions cannot be audited, the security and integrity of the Drex platform may be at risk. As it enters a new pilot phase, addressing privacy issues remains a top priority before considering new proposals.