A blockchain developer discovered functions that would enable a central authority to freeze payments or lower balances after reverse-engineering the source code of Brazil's pilot CBDC.
There Are Concerns That a CBDC May Restrict Access to Money and Invade Privacy
A blockchain developer discovered functions that would enable a central authority to freeze payments or lower balances after reverse-engineering the source code of Brazil's pilot central bank digital currency (CBDC).
Such features, according to the developer Pedro Magalhes, may be useful in particular circumstances, such as for secured loans and other financial activities based on decentralized finance (DeFi) protocols.
He did point out that the code is vague as to the conditions under which the tokens might be frozen and who has the authority to carry them out. Magalhes contends that these elements must constantly be made public in the smart contracts and addressed with the general public.
Many people in the cryptocurrency community have expressed worry that a CBDC may restrict their access to money and invade their privacy.
According to reports, the digital real pilot is operating on the privately operated, Ethereum Virtual Machine (EVM) compatible Hyperledger Besu blockchain.
