Brazil's CBDC pilot contains code that can freeze or reduce funds, developers say

Pedro Magalhães, a blockchain developer who claims to have reverse engineered the Brazilian pilot CBDC, found code that would allow accounts to be frozen or purged at will.

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A blockchain developer who claims to have reverse-engineered the source code of the Brazilian Central Bank's (CBDC) pilot digital currency has discovered functions in the code that would allow a central authority to freeze coins. funds or reduce balances.

He has since argued, however, that there might be situations where such functions could be beneficial.

On July 6, the source code for the Brazilian Digital Real pilot project was released on the GitHub portal by the Central Bank of Brazil. It was explained at the time that the pilot project was intended for use only in a test environment and that the "presented architecture" could be subject to further modifications.

Pedro Magalhães – blockchain developer and founder of technology consulting firm Iora Labs – claimed later in the day that he was able to "reverse engineer" Banco Central do Brazil's digital real open source code , revealing the functions of the code.< /p>

Functions included freezing and unfreezing accounts, increasing and decreasing balances, moving currency from one address to another, and creating or burning digital real from a specific address .

6/ These resources can be executed by any entity that receives the appropriate permissions from the controlling entity of the new system, i.e. the Central Bank.< /p>

Among the modifications that the authorities could potentially make using these functions are, for example: pic.twitter.com/AT5v1rOQbK

— Vini Barbosa (@vinibarbosabr) Ju...