Banco Central do Brasil, Brazil’s central bank, has announced its intention to develop a “super app” that will integrate artificial intelligence (AI) and the nation’s central bank digital currency (CBDC), known as “Drex.”
The initiative, targeting completion by 2025, aims to streamline digital financial services. Specifically, it plans to incorporate instant payment methods like Pix and leverage AI technologies similar to OpenAI’s ChatGPT.
AI-Powered Super App to Drive Financial Inclusion in Brazil
Central Bank President Roberto Campos Neto outlined the vision at the Blockchain Rio forum. Neto highlighted the thorough analysis already conducted on cryptocurrencies and digital payments.
He emphasized the need for a unified platform that enhances financial inclusion, security, and convenience for Brazilian citizens. Furthermore, he envisions a future where multiple banking apps are replaced by a single, comprehensive super app that aggregates financial data and uses AI to offer personalized financial services.
“Thinking about what a financial services aggregator of the future would be like, we already designed this some time ago, and it was a shock, but we thought about what a financial marketplace would be like,” Neto explained.
Read more: AI in Finance: Top 8 Artificial Intelligence Use Cases for 2024
The super app is expected to consolidate various financial functions into one platform. Therefore, it can reduce the need for multiple banking apps. Campos said this consolidation will leverage AI for enhanced data intelligence, providing users with a seamless and secure banking experience.
“Excited to see Brazil’s Central Bank progressing toward a “superapp” that combines AI, Pix, and the Drex CBDC. This project will enhance access to financial services for a broader audience, accelerate transaction speeds, and foster the adoption of Web3 technologies. To drive widespread adoption, it’s crucial to run campaigns that highlight the app’s benefits and security features. Offering rewards to early adopters and frequent users will also incentivize initial engagement and sustained use, integrating the app into the daily financial routines of Brazilians,” Chris Feng, Chainbase Co-Founder & COO, told BeInCrypto.
Separately, Italo Borssatto, the Bank for International Settlements (BIS) advisor, lauded the Drex initiative as the most forward-thinking in the region. Brazil distinguishes itself in the worldwide CBDC sphere through its focus on transparency and public engagement.
“Brazil remains a benchmark in central bank digital currency (CBDC). We see advanced projects in South Korea, Hong Kong, and Singapore. But Brazil is the boldest, with a concrete timeline,” Borsatto said.
Recently, the Brazilian Senate delayed the vote on PL 2338/23, a bill that aims to regulate AI tools in the country. This postponement shows ongoing debates and discussions before the implementation of any formal legislation. This regulatory framework will also be crucial in shaping the implementation and integration of AI within the super app.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
In parallel, Brazil’s Central Bank and Caixa Econômica Federal are collaborating on advanced payment solutions. They are testing offline payments using Drex, enabling transactions without internet connectivity. This initiative aims to facilitate financial transactions in remote areas, enhancing the accessibility and reliability of digital payments.
Local media reported Julierme de Souza of Banco do Brazil described the foundation of their offline payment solution as ‘symbolic money’. He emphasized that the devices, which operate without an online connection, reliably facilitate funds transfer between wallets. Overall, this initiative marks a crucial advancement in pursuing complete digital financial inclusivity.
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