The DREX, Brazil's Central Bank digital currency, poses risks such as heightened government control, financial surveillance, potential automatic value confiscation, and threats to privacy.

DREX is the latest announcement from the Central Bank of Brazil, representing the digital version of the real, formerly referred to as the “digital real.” Interestingly, the acronym DREX, which stands for “Digital Real Electronic Transaction,” is in English despite being designed for use in Brazil.

Curious, isn’t it?

It’s also worth mentioning that in recent years, the Central Bank introduced the Pix payment system, which quickly gained widespread popularity. Now, with Drex, a new initiative is on the horizon.

But what sets Pix and Drex apart? Both share an “X” at the end—could the Central Bank have drawn inspiration from Elon Musk and his fascination with the letter “X”?

In this article, we’ll break down what DREX is, how it works, and, most importantly, the hidden risks this new digital currency might bring to your life.

Let’s dive in!

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