How Brazil’s central bank can manipulate its digital currency: code analysis
Blockchain developer Pedpo Magellan dig deeper in the Brazilian central bank digital currency (CBDC) code and found some very interesting features that could greatly harm users of this currency.
Recently, the Central Bank of Brazil posted on GitHub documents on the state cryptocurrency project for public verification. Magellan conducted an analysis of the code and found out that the creators of digital reals have the ability to freeze and unfreeze accounts, accrue and write off funds from the balance, withdraw CBDC from any account. wallet, destroy coins in the selected cryptocurrency storage.
Thus, the Brazilian central bank and other government institutions have reserved the right to fully control digital realities and will be able to manipulate assets at their discretion.
In addition, employees of the Central Bank will be given the right to give access to the functions of a smart contract to anyone. Representatives of the Central Bank of Brazil do not deny the veracity of the information reported by Magellan. According to their statement, the department already uses similar options in existing payment systems, for example, Pix. The actions of central bank employees regarding the regulation of cash flows are allegedly based on the law. In connection with this, it can be created that specialists will stop or destroy digital realms if their owners are suspected of any illegal actions.
Meanwhile, in Russia, the State Duma recently adopted in the second reading a law on the digital ruble. The document introduces the basic concepts necessary for the introduction of the digital ruble, including determining the legal status and the possibility of conducting transactions with it, the relationship between the operator of the digital ruble platform – the Bank of Russia, its participants (financial intermediaries) and users (citizens and companies).
Operations on the digital ruble platform will be carried out in accordance with the rules approved by the Board of Directors of the Bank of Russia. It will be interesting!
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