Banco do Brasil will start operating digital currency payments

Banco do Brasil will start operating digital currency payments

Use a bracelet, plastic card or your own cell phone to make payments with virtual currencies without connecting to the Internet. All it takes is bringing the devices together to transfer the amount from the payer to the recipient in encrypted form.

This technological solution has already been tested in countries such as Ghana and Thailand, and the study of the technological solution will begin in Brazil. Banco do Brasil (BB) and Giesecke+Devrientcurrency Technology (G+D) have signed a technical cooperation agreement that provides for the use of Drex, a digital version of the real one developed by the Central Bank, for offline payments.

G+D is a global company providing solutions for digital security, financial platforms and monetary technology. The company is also developing global digital currency projects for central banks such as Drex. Banco do Brasil is officially participating in the Drex pilot project.

The agreement, signed after months of negotiations, aims to develop solutions adapted to the Brazilian reality of offline transactions with Drex, which complement transactions with cash, cards and BEX. According to Banco do Brasil, the solution under study was presented in the Financial and Technological Innovations Laboratory (Lift Challenge) programme, promoted by the Brazilian Central Bank.

According to Banco do Brasil, the offline payment solution will allow new uses for Drex to be explored. If the tests are successful, it will be possible to develop models for using cryptocurrency in everyday transactions, such as small purchases in trade, payments for services and allowances, for example.

Another advantage, according to BB, is that Drex will be expanded to include people who have difficulty accessing the internet, are without financial inclusion or live in places with unstable infrastructure. Unbanked people can carry digital wallets on a device, which can even be an accessory like a bracelet or ring, and make secure transactions at local businesses. Encrypted data transfers between accounts are guaranteed by the security protocol created by G+D.

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With information from Agência Brasil

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About the Author: Camelia Kirk

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