Brazil abandons its CBDC plans

Just came across an article that got me thinking, so I wanted to share it here for some discussion. It talks about how some countries are either backing out or delaying their CBDC projects. This is pretty wild for us as regular folks, right? I mean, what if we end up with a type of money that can be blocked at any moment for who knows what reason? Looks like Brazil, even with its far-left government, has decided to ditch the DREX project (that’s their CBDC) according to their central bank. Is this a sign of what’s to come? Are more countries gonna shy away from this unpopular form of currency?

I wouldn't really conclude that Brazil gave up on CBDC because from what I can understand, it is more or less a change in direction or what we call change of mind or just a temporary delay due to reasons of CBDC being unpopular and not yet adopted by the citizens perhaps due to the issues of privacy, cost of implementing the CBDC project and it also being a necessary means to an end for traditional finance system. I don't think many countries who rushed into developing their own central bank issued CBDC are actually using it to full function, because it is an unknown field of endeavor that was introduced because the government didn't want cryptocurrency to be used by its citizens and because they want to still maintain control over every citizens financial balance.

No, this is more like putting off what's surely happening. I think the reason why some countries are shelving the implementation of a CBDC is that the time isn't yet fully ripe. Except in a few advanced countries, the rest have yet to fully embrace a digital lifestyle. In Brazil, for example, there must remain a so-called digital divide. Many rural communities are probably unprepared for a digital currency. But I believe this is all temporary. Time will come everybody uses the internet. When countries become fully digital, I don't think money will be left behind. It will certain turn digital as well.

CBDCs can give advantage and disadvantage to governments with the transparency, governments can have more real time data on their citizen financial activities while citizens will have a better tool to observe the governments' finacial inflows and outflows. The citizens can better know about activities of governments and I guess the Brazilian government likely are fearful about it. Just my guess and two cents, not sure. CBDC is like a double-edged tool for Brazilian government and they seemed fear about possible adverse effects. Globally CBDCs will still be a hot trend in next years. https://cbdctracker.org/

One funny thing about these their CBDC is that the problem isn't for them to implement it but for people to actually use it. CBDC is a distraction to cryptocurrency and people are already aware of the difference between a fiat pegged digital currency and a decentralized digital asset like bitcoin, people are looking forward to every means to get free from their government financial cages and I doubt people are any interested in those CBDC. Take for example, my government hyped the creation of my country fiat backed digital asset E-naira with the hope that it would be adopted but I can tell you that up until now, there's no real application of the E-naira, more like it died a natural death. CBDCs are a mistake of innovations, maybe the central bank in Brasil was smart enough to learn this lesson and didn't continue wasting finances on what makes no sense.

They are rushing things without even thinking if people would really adopt on new changes they are trying to implement. I guess they didn't achieve the expected support they get from people and they face to many challenges that's why they decide to shutdown this project. Look at this article released last 3 weeks ago https://valorinternational.globo.com/markets/news/2025/11/05/central-bank-shuts-drex-platform-clearing-path-for-stablecoins.ghtml now they are exploring to shift on stable coin which is pegged with real

CBDCs are waste of money. It is like you are creating what you have already using another method. We do not even know if the method is true as they called it blockchain. There is digital fiat long ago before the existence of CBDCs. Why making digital fiat again when you have one already? CBDCs do not worth to be created.