In 2026, Brazil will launch DREX, its official Central Bank Digital Currency. But with full financial control, traceability, and programmable money, a question arises: 👉 Could Brazil criminalize Bitcoin to protect its new digital real?
In this video, we dive deep into:
What DREX really is and how it works
Why it clashes with Bitcoin’s decentralized nature
Brazil’s crypto law and what it means for users
The global context of CBDCs vs. cryptocurrencies
Two possible futures: coexistence or criminalization
What everyday Brazilians might face in 2026
The future of money in Brazil is at a turning point. Will the country embrace Bitcoin as a reserve asset… or outlaw it to enforce total control?
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00:00In 2026, Brazil will launch its official central bank digital currency, the Asteriskostris Drex Asteriskostrisk.
00:06This new digital reel promises faster payments, programmable money, and full integration with the financial system.
00:12But at the same time, it raises an uncomfortable question, Asterisk what happens to Bitcoin once Drex goes live?
00:18Asterisk.
00:19Could Brazil actually criminalize Bitcoin to protect its own digital currency?
00:23To answer that, let's go deeper.
00:25The Drex is not just another payment app.
00:27It is money itself, but in a fully digital format.
00:30Every Drex token is backed one-to-one by the Brazilian reel.
00:33It's issued and controlled by the central bank.
00:36With Drex, transactions can be processed instantly.
00:39Taxes could be collected automatically.
00:41Smart contracts could be embedded directly in payments.
00:44For businesses and banks, it means efficiency.
00:46For governments, it means complete oversight.
00:49Unlike Bitcoin, where every node has equal power, Drex runs on a permissioned and centralized network.
00:54That means only the central bank decides who can validate transactions.
00:58Now, let's compare that with Bitcoin.
01:00Bitcoin is decentralized.
01:02No government issues it.
01:03No one can freeze your balance.
01:05It runs on open code, resistant to censorship.
01:08This is exactly why many Brazilians use Bitcoin to protect savings against inflation to transfer money abroad at banks or simply to escape surveillance.
01:15But for governments, that's also exactly the problem.
01:19If Drex is the official currency, Bitcoin becomes a parallel system operating outside state control.
01:24So why would Brazil consider criminalizing Bitcoin?
01:27There are three main reasons.
01:28A country can only issue one sovereign currency.
01:31Allying Bitcoin to circulate freely might be seen as a direct challenge to the real.
01:35With Drex, this argument gets stronger because the central bank is positioning the digital real as the only valid form of digital money.
01:41Authorities already worry about Bitcoin being used for tax evasion, corruption, and crime.
01:47Once Drex exists, the government may push harder to classify Bitcoin transactions outside regulated exchanges as suspicious or even illegal.
01:54Drex gets policy makers an unprecedented tool to manage the economy.
01:58They can track flows, blocks, suspicious accounts, and implement instant financial measures.
02:02Bitcoin removes all that control.
02:04From the government's perspective, that makes it dangerous.
02:06It's important to highlight that Brazil already has a crypto law, asterisk, asterisk, law number 14.478 of 2022, asterisk, asterisk.
02:15This law doesn't criminalize Bitcoin itself, but it regulates service providers like exchanges, forcing them to adopt strict KYC, anti-money laundering measures, and consumer protection rules.
02:25So right now, Bitcoin is legal.
02:27But that could change if lawmakers decide it conflicts with the new digital currency.
02:31Bitcoin remains legal, but highly regulated.
02:33To use it, you must go through licensed platforms.
02:36Transactions are reported to tax authorities.
02:39Here-to-peer exchanges become risky, but not fully banned.
02:42In this world, Bitcoin exists, but only under constant surveillance.
02:46Lawmakers classify Bitcoin as an illegal parallel currency.
02:49Holding or trading at outside state channels becomes a crime, just like counterfeiting money.
02:53The justification would be simple, protecting the integrity of the financial system and ensuring Drex adoption.
02:59We also need to consider the global context.
03:01Countries like China have already banned Bitcoin trading to protect their digital urine.
03:05Other nations, like the United States, are tightening regulations around self-custody wallets.
03:11If major economies start pushing for stricter crypto rules, Brazil could follow the trend, especially if the International Monetary Fund or the G20 encourages uniform policies.
03:19But here's the paradox.
03:20While some lawmakers talk about control, others are moving in the opposite direction.
03:25There's even a proposal in Brazil to add Bitcoin to national reserves, creating what's called RRES-BIT, a strategic reserve in Bitcoin.
03:32That would mean the government itself holding Bitcoin as part of its financial security.
03:36So the future isn't set in stone.
03:38Brazil could either embrace Bitcoin as a hedge or criminalize it as a threat.
03:42For regular citizens, the stakes are high.
03:44Drex could make everyday payments faster and easier.
03:47But it also means that every transaction you make is recorded, traceable, and reversible by the central bank.
03:53Bitcoin, on the other hand, gives freedom and privacy but with risks.
03:56If Brazil criminalizes it, holding Bitcoin could mean fines or even prison.
03:59So in 2026, Brazilians may have to choose, follow the official digital real, or risk becoming digital outlaws by holding decentralized money.
04:08So will Brazil actually criminalize Bitcoin in 2026?
04:11Right now, it's uncertain.
04:13The law does not say so.
04:15But once Drex goes live, the temptation to eliminate all competition will be strong.
04:19Governments want control.
04:21Bitcoin resists control.
04:22That is the clash.
04:23The future of money in Brazil will depend on which vision wins, centralized digital sovereignty or decentralized financial freedom.
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