Brazil’s Central Bank Builds a Blockchain Platform for Financial Regulators
Brazil’s Central Bank could soon launch its new blockchain platform to ensure exchange of authentic information between the country’s financial regulators.
Banco Central do Brasil, the central bank of Brazil, announced yesterday that it has developed the platform to facilitate secure data sharing between various other domestic financial regulators and itself. These regulators include the CVM (Brazilian Securities and Exchange Commission), PREVIC (National Superintendency of Complementary Pensions), and SUSEP (Brazil’s Superintendency of Private Insurance).
Dubbed ‘Pier’, the platform will be used by the institutions to exchange data related to their authorization processes, including the performance of the administrator, punitive processes, as well as management of various corporate entities regulated by the BCB. In the release, the central bank credits blockchain technology for its ability to provide immutable data storage, as well as a horizontal network of information.
By using the blockchain technology as its underlying technology, Pier is expected to eliminate the hierarchical nature of business models and help financial regulators in bypassing all centralized entities while communicating. Moreover, Pier would not let any third parties tamper with information, as every data request is stored using cryptographic signatures on the platform, the release says.
It is still unclear which blockchain the new platform is based on, from the little information provided by the bank. But, in a November interview, the BCB made it public that it was developing proofs-of-concept on 4 different platforms – JP Morgan’s Quorum, Hyperledger Fabric, Ethereum, alongside Corda.
As per the bank release, the platform received technical assistance from the deINF (Department of Informatics) at the Federal University of Maranhão in August last year for its development. Currently, Pier is undergoing testing at the Department of Informatics to smooth out any technical errors before its launch later this year.
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