Elo and CAIXA Pioneer Offline Blockchain Payments in Remote Areas with Limited Connectivity

In a groundbreaking initiative, Brazilian payment technology company Elo and state-owned bank CAIXA are testing offline blockchain-based payment solutions in regions with poor internet access. The pilot project, part of the Drex consortium, aims to bridge the digital divide for millions of Brazilians while demonstrating the real-world applications of blockchain technology beyond cryptocurrency speculation.

Why Is Brazil Focusing on Offline Payment Solutions?

Brazil presents a unique paradox in digital connectivity. Despite being Latin America's largest economy, as of April 2025, approximately 57% of Brazilians lack high-quality internet access, with only 22% enjoying stable, full connectivity according to the "Meaningful Connectivity: Proposal for Mediation and Portrait of the Population in Brazil" study. This digital divide creates significant challenges for financial inclusion, particularly in rural and remote areas where traditional banking infrastructure is scarce.

The partnership between CAIXA (which has a strong social mandate in Brazil), Elo (a Brazilian payment technology company), and IDEMIA Secure Transactions seeks to develop financial solutions for economically vulnerable regions with restricted network access. Their offline payment system represents a potential game-changer for financial inclusion, allowing transactions to occur without real-time internet connectivity.

How Does the Offline Blockchain Payment System Work?

The innovative solution leverages blockchain technology to enable secure offline transactions through digital wallets that store users' cryptographic keys. These wallets can access tokenized versions of currency (financial assets converted into digital tokens), creating a secure, frictionless transaction circuit protected by encryption.

According to Eduardo Merighi, Elo's Vice President of Technology and Solutions, "The project combines layers of innovation, decentralized infrastructure, and customer journey design that ensure transaction integrity even in environments with restricted internet access." The digital wallets at the Core of the system can operate in both online and offline modes on compatible mobile devices, supporting transactions at points of sale through NFC technology, QR codes, and even biometric cards.

Where Was the System Tested and Why?

The robust field test occurred on April 4, 2025, in São Sebastião da Boa Vista, Pará - a riverside municipality known as the "Venice of Marajó Island" for its network of waterways and stilt houses. This location was strategically chosen due to its limited internet coverage (only 54% of the urban and rural population has access according to ANATEL 2024 data) and its representation of the challenges faced by Brazil's riverine communities.

CAIXA's unique "Boat Agency" serves this region, providing itinerant banking services to Amazonian riverine populations. The agency offers all conventional banking services except cash transactions, making it the perfect testing ground for digital payment alternatives. Marcelo Viana Paris, CAIXA's National Superintendent of Social Benefits, emphasized that "initiatives like this demonstrate technology's potential to enable secure, efficient transactions while contributing to our country's economic and social development."

What Impact Could This Have on Financial Inclusion?

The successful implementation of offline blockchain payments could revolutionize how underserved populations receive, send, spend, and save money. Rafael Dias Silva, CAIXA's National Superintendent of Financial Administration, stated their mission is to "explore offline payment technology to expand financial inclusion, offering cutting-edge solutions to improve lives while developing business opportunities across all Brazilian territories."

This project highlights how technological innovation can thrive in simple, practical applications. As Merighi noted, "Brazil offers lessons beyond standardized market protocols. We've learned innovation can apply in circumstances of maximum simplicity. Creating increasingly simple, efficient services within a context of technological advancement is a MANTRA for us."

Frequently Asked Questions

What is the Drex consortium?

The Drex consortium is a collaborative project developing Brazil's digital financial infrastructure, with this offline payment solution representing one of its first practical applications.

How secure are offline blockchain transactions?

The system uses multiple layers of encryption and decentralized verification to ensure security comparable to online transactions, with all offline transactions being validated once connectivity is restored.

When will this technology be widely available?

While still in pilot phase, successful tests in São Sebastião da Boa Vista suggest potential for broader implementation within 12-18 months, depending on regulatory approvals.

Can users access traditional banking services through this system?

Currently focused on payments, the technology could eventually support a wider range of financial services as the infrastructure develops.

What devices support the offline payment system?

The solution works on NFC-enabled mobile devices and supports transactions via QR codes and biometric cards, with plans to expand compatibility.