Brazil’s central bank, Banco Central do Brasil, announces plans to develop a “super app” integrating AI and the nation’s central bank digital currency （CBDC）, Drex, by 2025. The initiative aims to enhance financial inclusion and streamline digital financial services.
Points
- Brazil’s central bank to launch AI-integrated super app
- Integration of CBDC Drex and instant payment methods like Pix
- Enhanced financial inclusion and streamlined services
- AI-driven personalized financial services
- Collaboration with BIS and regulatory framework development
Banco Central do Brasil, the central bank of Brazil, has revealed ambitious plans 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 and enhance financial inclusion across Brazil.
Central Bank President Roberto Campos Neto outlined the vision at the Blockchain Rio forum, emphasizing the need for a unified platform that improves convenience, security, and accessibility for Brazilian citizens. The super app is expected to consolidate various financial functions into a single platform, reducing the need for multiple banking apps.
Neto highlighted that the app will incorporate instant payment methods like Pix and leverage AI technologies similar to OpenAI’s ChatGPT. This integration is designed to offer personalized financial services, enhancing user experience and providing data-driven financial advice.
Driving Financial Inclusion with AI and CBDC
The development of this super app is a significant step towards financial inclusion. By integrating AI and Drex, the central bank aims to reach underserved populations and offer secure, convenient financial services. This initiative is part of a broader effort to modernize Brazil’s financial infrastructure and promote digital inclusion.
Italo Borssatto, an advisor at the Bank for International Settlements （BIS）, praised the Drex initiative, describing it as the most forward-thinking in the region. He noted that Brazil’s focus on transparency and public engagement distinguishes it from other global CBDC projects.
In addition to the super app, Brazil’s Central Bank and Caixa Econômica Federal are testing offline payments using Drex. This initiative aims to facilitate transactions in remote areas without internet connectivity, further enhancing financial accessibility.
Regulatory Framework and Collaboration
The success of the super app will depend on a supportive regulatory framework. The Brazilian Senate has delayed the vote on PL 2338⁄23, a bill aimed at regulating AI tools, indicating ongoing debates and discussions. This regulatory framework will be crucial in shaping the implementation and integration of AI within the super app.
The collaboration with international bodies like the BIS and local institutions such as Caixa Econômica Federal reflects a comprehensive approach to developing a robust digital financial ecosystem. These efforts are expected to position Brazil as a leader in digital financial innovation.
In summary, Banco Central do Brasil’s plan to launch an AI-integrated super app featuring the CBDC Drex by 2025 represents a significant advancement in digital financial services. This initiative aims to enhance financial inclusion, streamline services, and position Brazil at the forefront of digital financial innovation.
Explanation
- Central Bank Digital Currency （CBDC）: A digital form of a country’s fiat currency, issued and regulated by the central bank. CBDCs aim to provide secure, efficient, and accessible digital payment solutions.
- Artificial Intelligence （AI）: The simulation of human intelligence in machines, designed to perform tasks such as learning, problem-solving, and decision-making.
- Financial Inclusion: Efforts to make financial services accessible and affordable to all individuals and businesses, particularly those who are underserved by traditional financial institutions.