“Banco do Brasil tests offline payments for central bank digital currency – innovative pilot project with Giesecke+Devrient”


Banco do Brasil and Giesecke+Devrient Testing Offline Payments for Central Bank Digital Currency in Ongoing Pilot Project

Banco do Brasil, one of the largest banks in Brazil, has partnered with the renowned French company Giesecke+Devrient (G+D) to test offline payments for its central bank digital currency, known as Drex. The project aims to conduct pilot tests to assess the effectiveness of payments using the Brazilian digital currency in situations where there is no access to the internet or electrical grid.

Project Goal: Enabling Payments in Crisis Situations

The primary goal of this innovative project is to enable payments in crisis situations, such as power outages or lack of internet connectivity. Previously, cash was the only option in such scenarios, and introducing a central bank digital currency aims to increase financial service availability for Brazilians, especially those with limited or no internet access.

Expanding Financial Service Access for Individuals with Limited Internet Connectivity

One of the key aspects of the project is to provide a complementary payment instrument to cash, which will support individuals in social classes D and E, where cash is the most commonly used payment method. Banco Central do Brasil plans to introduce the CBD Drex digital currency for use by the end of 2024, marking an important step in the digitization of the payment system in the country.

Giesecke+Devrient’s Experience and Previous Pilot Projects

Previous pilot projects, such as the trial phase of the e-HKD digital currency in Hong Kong conducted by Giesecke+Devrient, have allowed for testing key factors, including “offline capability” and “interoperability.” Banco do Brasil’s Vice President, Marisa Reghini, emphasizes that the bank is committed to bringing financial services closer to all residents of Brazil, and through offline payments, easy access to technology can be provided to individuals struggling with technological infrastructure.

Summary

The collaborative project between Banco do Brasil and Giesecke+Devrient to test offline payments for the central bank digital currency Drex represents an innovative step in the digitization of Brazil’s financial system. With this solution, Brazilians will be able to make secure transactions in situations where internet or power access is lacking, significantly facilitating daily payments and expanding financial service access to all social strata.