central bank of the father.

What are the risks for investors?
1. Risk of centralization and state control
Drex will always be a central bank digital currency (CBDC). This means it will be issued and regulated by the Central Bank. Without blockchain technology to distribute the transaction record, the centralization of control becomes even more evident.
* Surveillance and privacy: The main concern is that the government may have greater visibility and control over financial transactions. Although the Central Bank claims that banking secrecy will be maintained and protected by the LGPD, the possibility of the State having easier access to transaction data (especially in a centralized system) raises concerns.
* Programmable money: The characteristic of "programmable money" of Drex, which allows money to have a specific purpose, could be used to restrict the use of resources. While this could bring benefits (such as the transfer of social benefits with specific use), in the long run, this same functionality could be used to impose rules on consumption, creating uncertainty for investors.
2. Risk of "confiscation" and fund blocking
With the centralized system, the possibility of account blocking or fund confiscation by the government becomes a risk. In a traditional system, judicial blocking of an account is already possible, but the Drex technology, with smart contracts, could make this process faster and more straightforward.
* Automatic blocking: The implementation of smart contracts in Drex would allow the government or the judiciary to block or seize assets in an automated manner without the need for manual intervention.
3. Cybersecurity risk
A centralized platform is a more attractive target for cyberattacks. If Drex's infrastructure is not extremely secure, a successful attack could compromise the entire system and the assets of investors.
* Vulnerability: Without the distributed record of a blockchain, which prevents transactions from being altered.