A blockchain developer has recently said he has reverse-engineered the source code for Brazil’s prototype central bank digital currency (CBDC), and claims to have discovered functionalities within the code that could enable a governing body to freeze funds or deduct from balances.
Pedro Magalhães, founder of tech consulting firm Iora Labs, contended there may be scenarios in which such functionalities could prove useful. The source code for the CBDC, the Real Digital, was uploaded on GitHub on July 6 by Brazil’s central bank, which clarified the project is designed for testing purposes only and the current architecture will still undergo modifications.
After the code was uploaded, Magalhães announced that a reverse-engineer of the code revealed intriguing features in the code, including the capacity to freeze and unfreeze accounts, adjust balances, transfer Real Digital between addresses, and generate or destroy Real Digital from a particular address.
Magalhães noted that the code lacks clarity regarding the specific conditions under which tokens could be frozen and, most critically, who has the authority to execute it. While the CBDC has been controversial, Magalhães has suggested it could offer certain benefits, highlighting taxes would become more traceable, allowing the public to scrutinize how these funds are used.
Central Bank of Brazil economist Fabio Araujo argued in July 2022 that the Digital Real could potentially prevent bank runs and provide entrepreneurs with a more secure and dependable environment for innovation.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/jul/11/
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