Brazil’s Finance Minister Addresses Cybersecurity and Drex Project
Brazil’s Finance Minister Fernando Haddad spoke about rising cybersecurity concerns on Saturday. He reaffirmed support for Drex, the country’s tokenized financial infrastructure. His comments came after a July cyberattack on C&M Software. This company provides central infrastructure for the Central Bank of Brazil. The attack led to hackers stealing over $140 million from six Brazilian banks.
The breach involved insider credentials reportedly sold for $2,700. It became one of Brazil’s largest financial cybercrimes. On-chain analyst ZachXBT said up to $40 million of the stolen funds were laundered. The criminals used Bitcoin, Ethereum, and Tether through Latin American crypto exchanges and OTC platforms.
Drex Aims to Improve Transparency and Security
Following the hack, Haddad explained Drex’s purpose. The project is not designed to monitor individuals. Instead, it aims to streamline transactions, increase transparency, and lower costs in the financial system. Haddad said Drex also helps Brazil compete with global tech giants. Data sovereignty remains a key goal.
“We’re not building surveillance. We’re building infrastructure,” Haddad said. He stressed the need for secure, sovereign data centers in Brazil. These centers will protect sensitive financial data.
Cybersecurity Risks and Crypto Regulation Challenges
Public trust in centralized financial institutions is under pressure after recent breaches. Experts warn that legacy systems remain vulnerable to cyberattacks. Drex, although centralized, seeks to modernize financial infrastructure and improve resilience.
The laundering of stolen funds through crypto exchanges has raised concerns about digital assets enabling financial crime. Blockchain offers transparency and user control. However, loosely regulated platforms can be exploited. This situation highlights the need for regulation of both banking systems and crypto infrastructure.
