Drex and Pix will work without internet, Campos Neto says

In a panel held on the 17th, Campos Neto revealed that both the drex as the Pix can receive updates so that citizens can use the service offline, i.e. without being dependent on internet access.

In the conversation, the President of the Central Bank of Brazil also spoke about the challenges of inflation, the creation of common currencies between countries, the use of artificial intelligence and other points.

“Payments are being digitized, cash is losing importance over time.”

Drex and Pix will be able to operate without internet, says BC president

Today, one of the biggest limitations of digital currencies is their dependence on the internet. As mentioned in a question to Campos Neto, some places do not have access to this technology, which could undermine financial democracy. In response, the BC president indicated that they are already developing a solution for this.

“When we created Pix, I was a little frustrated because I thought that when we designed Pix and gave it to the banks to work with the company, the banks would do it offline”said Campos Neto. “Because it’s relatively simple.”

The BC president then notes that people nowadays have change in their wallets to pay for small things. “You can do this digitally, take it from online and take it offline,” Neto explains, noting that the limit would be small.

“Even without a signal [de internet] You can pay offline via your mobile phone. No WiFi is required. We thought some banks would do this naturally, but they didn’t.”

In defense of the banks, Neto points out that this was an expensive development and that there were other priorities because they were overloaded.

“We are working on the idea of ​​having it offline, not just for Drex, I think you can have it offline on Pix”said Neto. “You can have a digital wallet in your cell phone, where you can deposit money offline and make those payments offline, as long as your cell phone has a battery but doesn’t have to have a signal [de internet]. We are testing a number of these types of models.”

Moving on, the BC president also reveals some weaknesses in the current security model, such as the use of facial biometrics. According to Neto, these technologies become more vulnerable over time. “Biometrics must be something very strong, so we are also working on that”concluded.

Countries no longer need a common currency, Campos Neto warns

In another part of the conversation, Campos Neto talks about the possible creation of a common currency between countries. According to the President of the Central Bank, technology has allowed this idea to be left in the past.

“I have always been involved in moments when they wanted to create a common currency for South America, a common currency with Argentina”began the president of the B.C. “Ultimately, if we think about what benefit literature offers in commercial terms because you have one currency, digitalization does this for you, without having to give up the freedom of monetary policy.”

To explain his comment, Neto points out that if different countries have connected digital currencies in real time, you have gained the advantage that you would have if you had a common currency area.

“It will be a big job for Brazil in the G20. We want to embrace this business of creating a platform to connect different payment systems because every place in the world is developing a payment system. What we have not yet succeeded in doing is connecting with each other.”

Neto then also notes that technology is evolving rapidly. As an example, he mentions that it is now possible to make connections between systems with or without blockchain. “This didn’t exist two years ago”he noted, also citing the use of liquidity pools in token form.

You can watch the full video in full below, in which the President of the Central Bank of Brazil also talks about other aspects of our economy.