Banco do Brasil (BB) will partner with Giesecke+Devrient (G+D) to test an offline payment solution within the CBDC pilot of the Brazilian Digital Real Electronic (DREX).

This will allow the exploration of payment use cases using the Brazilian digital currency in situations where there is no internet connection or electricity grid.

One of the main goals of this project is to extend access to financial services to Brazilians with limited or no access to the Internet, by providing a complement payment solution to cash.

Cash payment is the second most used payment method in the country, behind the immediate payment method PIX by Banco Central do Brasil,1 while in social economic classes D and E, cash is the most used payment method.

In times of progressive digitalization, a solution that allows payments to be made without the need for an internet connection has a great chance of boosting financial inclusion in Brazil.2

The Central Bank of Brazil plans to launch the CBDC DREX by the end of 2024.

With this step, Banco do Brasil intends to further explore the potential of the DREX platform provided by the Central Bank during the Brazilian CBDC pilot.

In previous pilot projects, like the offline CBDC trial phase of Hong Kong’s e-HKD, G+D has already tested important factors such as ‘offline capability’ and ‘interoperability’, which are crucial for the success of a digital currency.

This includes ensuring smooth and secure transactions under all circumstances, while allowing consumers to use their preferred network and digital wallet for transactions.

With these key findings, BB and G+D will now test an additional digital offline payment solution within the DREX pilot that will also benefit people in remote areas such as forest, riverine and rural regions.

It will also enable payments to be made in crisis situations, such as power or internet outages, where cash was previously the only option.

“With offline payment, we can bring ease and technology to people who have difficulty accessing the technological infrastructure,” says Marisa Reghini, vice-president of digital business and technology at BB.

“Brazilians can benefit from the solution in their daily lives, carrying out secure transactions in local shops, for example, without the need for a bank account or the Internet.”

1 Financial Inclusion in Brazil 2022, Plano CDE

2 Socioeconomic classes in Brazil

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