Brazil Lawmakers Advance Bill to Keep CBDC From Replacing Cash and Enabling Surveillance

A bill in Brazil's Congress aimed at setting guardrails for a future central bank digital currency (CBDC) has cleared a key hurdle, as lawmakers seek to ensure the instrument cannot be used to expand state control, replace cash, or deepen financial exclusion. Bill 4212/25, introduced last year by Deputy Bia Kicis and revised by rapporteur Lafayette de Andrada, was approved in amended form by the Chamber of Deputies' Economic Development Committee and now heads to floor votes. The proposal targets limits on the Central Bank of Brazil and other institutions involved in any eventual CBDC rollout, citing the need to protect economic freedom, privacy, and public security. Under the text, a central bank-issued digital currency would be barred from substituting paper money, could not be imposed as legal tender, and could not be deployed as a tool for political or ideological surveillance. The bill also includes a provision designed to prevent digital-first policy from shutting out vulnerable groups: Article 5 requires authorities to ensure that drex does not lead to financial exclusion, with accessible alternatives guaranteed for people without access to digital media. Kicis argues that while an official digital currency such as Brazil's drex could bring meaningful benefits, global precedents show the technology can also facilitate mass surveillance and transaction monitoring, raising concerns around privacy, individual liberty, and citizen safety. The legislative push comes as the central bank reassesses drex and has already narrowed the project's scope amid privacy concerns. Even so, debate continues over the risks of a fully digital system for less tech-savvy citizens and others who rely on cash for daily spending. The bill still requires approval in both chambers of Congress and presidential sign-off. Its progress signals growing interest in codifying checks on any future CBDC and how it could be used by the Brazilian government.