G+D participates in the Central Bank of Brazil’s digital currency initiative

The planning of Brazil’s central bank digital currency, Real Digital, is entering a new phase. Banco Central do Brasil (BCB) has selected Giesecke+Devrient’s CBDC solution, Filia, for its dual offline payment capability in a challenge that assesses the use cases of a digital currency in this country from South America.

The central bank digital currency (CBDC), Real Digital, is to be launched in Brazil as early as 2024. This would position Brazil among the first major countries to have a CBDC as a complementary alternative to cash. In preparation for this major milestone, the Central Bank of Brazil, in partnership with the National Federation of Bank Central Server Associations (Fenasbac), launched the “LIFT Challenge Real Digital” program to evaluate use cases and best practices. technologies for the ambitious project.

The LIFT challenge aims to identify the fundamental characteristics of an infrastructure for the Real Digital. This infrastructure should be able to support the use cases presented, which will mature during the challenge period, to bring new functionalities to the Brazilian payment system and add value to the Brazilian society.

The implementation phase now begins for nine of the 47 projects submitted and will end at the end of July 2022. G+D’s proposal was selected for Filia’s ability to make two offline payments – payments when the payer and the beneficiary do not have internet access. or food.

Secure digital payment with Filia – also offline

A CBDC is a digital alternative and a complement to cash. It will promote financial inclusion by being accessible to everyone, regardless of their social status, location and ability to access bank accounts, payment service providers or the Internet. So, unlike existing digital payment solutions, it must have an offline feature that allows all users to make payments anytime and anywhere.

G+D developed its token-based solution with the vision of enabling secure consecutive offline payments. This functionality is made possible by the Filia protocol coupled with secure hardware elements, such as the chip found in payment cards. The Filia protocol manages the processing of payment transactions between offline wallets and ensures that only mutually authorized wallets are allowed to do so. It also prevents money from being lost or transferred twice if the connection is interrupted during a transaction. Transfers can also be made via hardware devices such as smart cards, handheld devices or key fobs and do not require either the payer or the recipient to have a bank account. This ensures that users of a CBDC are independent of expensive devices and network availability, making it a secure and inclusive digital payment method for everyone.

Open platform for third-party solutions

G+D’s CBDC solution aims to be a platform on which private sector players can innovate. Software development kits are part of the offering and help integrate the CBDC into third-party applications such as commercial banks’ mobile banking apps. Based on this, companies can enrich central bank digital currencies with innovative and secure products and services.

Raoul Herborg

Raoul Herborg

“A CBDC should work for everyone, anywhere, anytime. Only then can it become a truly inclusive public digital currency. We are pleased that Banco Central do Brasil has recognized the importance of offline double payments saying that this subject faces even greater technological challenges than those present in a CBDC’s online applications“,

commented Raoul Herborg, Managing Director of the Central Bank Digital Currency Unit at Giesecke+Devrient.

This article first appeared on fintechnews.am

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Sylvia B. Polson