Brazil bill limits drex CBDC, protects cash, bans surveillance

On June 12, 2026 the Economic Development Committee of Brazil’s Chamber of Deputies approved a revised Bill 4212/25 that limits the reach of the central bank’s drex central bank digital currency (CBDC). The measure advances to floor votes in the Chamber of Deputies.

The bill was introduced last year by Deputy Bia Kicis and revised by rapporteur Lafayette de Andrada. It sets legal limits on how the Central Bank of Brazil and related financial bodies could design or operate a state digital currency. Key provisions state a CBDC cannot replace paper money, cannot be mandated as legal tender, and cannot be used as an instrument of political or ideological surveillance.

Article five of the proposal requires that authorities ensure “digital currency does not result in financial exclusion, always guaranteeing alternatives accessible to the population without access to digital media.” The clause directs officials to provide non-digital payment options for people who lack smartphones, internet access or bank accounts.

Deputy Bia Kicis, the bill’s sponsor, argued the creation of a state digital currency can bring benefits while raising concerns about privacy, individual freedom and citizen security. Lawmakers who supported the text cited international examples of broader digital payment systems enabling greater transaction monitoring.

The Central Bank of Brazil has been reassessing the scope of its drex project amid privacy debates and has already narrowed aspects of the initiative. The committee-approved bill would formalize constraints, including an explicit prohibition on forcing citizens to use only the digital currency.

The proposal must still be approved by both chambers of Congress and receive the president’s signature to become law. If enacted, the statute would require the parallel availability of cash and legal safeguards against use of a CBDC for surveillance or coercion.

The debate in Congress reflects ongoing discussions in Brazil about modernizing payments while protecting privacy and access for unbanked or digitally excluded populations. Lawmakers and civil society groups have previously called for clear privacy guarantees and measures to ensure access for older adults, low-income households and residents of remote areas.