Brazilian monetary regulators will verify companies and persons appointed to political office in Blockchain | Zoom Fintech

Brazilian monetary regulators launched a blockchain information exchange platform, called PIER, on Wednesday.

At the time of its launch, the blockchain draws knowledge from three of Brazil’s four main monetary institutions: the non-public insurance superintendent (SUSEP), Banco Central do Brasil (BCB) and the securities regulator (CVM), PIER’s main sponsors. The health and safety guardian of PREVIC also plans to catch.

As soon as this is done, PIER will unite the entire Brazilian monetary surveillance ecosystem into what CVM describes as a “huge embedded database” that is accelerating the pace at which anyone can manage their $ 1.9 trillion piece of Brazilian financial system – the largest in the world. Latin America is far away.

One application of the platform could be background checking of political appointees, according to the BCB.

“Our goal is for this method to promote the positive aspects in the market, taking into account the additional environmentally friendly, safe and sufficient supervision and enforcement of the completely new technological situation that we are experiencing,” said CVM president Marcelo Barbosa in a press release.

PIER enables bureaucrats to access their sister companies’ real-time data on sanctions, financial performance and business associates in seconds, according to the BCB. It is a simple, on-line bridge between previously silenced storehouses of knowledge.

“This enables the timeframe of the needs assessment to be drastically shortened,” recalled Daniel Bichuette, deputy head of the BCB Monetary System Group Division, in a press release.

Each company envisages using PIER to increase the effectiveness of supervision. For example, the BCB mentioned in a press release that PIER could improve the screening of elected officials appointed to positions in monetary institutions – in particular, the screening of their {qualifications} and corporate reputation. The central financial institution is responsible for carrying out such investigations.

CVM, in its half, mentioned that PIER could increase the number of investigations in the company.

The challenge is expected to reduce the time needed for investigations between regulators in addition to the price. CVM did not immediately respond to requests for tedious numbers.

It is also viewed as a safer technique for storing information.

“Building PIER, using blockchain, allows the use of decentralized, researched expertise, the native functionality of which means that there is no need to build the system from scratch,” said BCB program manager Eduardo Weller in a press release.

Mainly based on the PIER BCB description, the underlying blockchain seems to take full advantage of the multi-node consensus mechanism and digital signature system. BCB did not immediately respond to requests for a deeper technical review.

The BCB will add additional authorities’ databases to PIER over time, saying the system “has the potential to link databases outside the monetary system,” the press release mentioned. The available extras include knowledge from: “the judiciary, trade councils and our global monetary stability.”

PIER’s debut has been going on for 2 years. BCB, which first developed PIER and now manages it, disclosed the existence of PIER in June 2018. Project manager Gabriela Ruberg did not respond to the request for attention.

Brazil’s monetary sector typically appears to have blockchain potential. Private banks issued security tokens on the Tezos blockchain and minted stable Brazilian coins based on realas on Ethereum. As the PIER press release notes: “Blockchain use in monetary firms is becoming more and more commercially available.”

Regulators, especially the BCB, were equally optimistic. The currently operating 4 PIER launched the blockchain sandbox in June 2019.

This take into account of the technological potential of blockchain is available to highlight its broader views on cryptocurrencies. BCB officials compared bitcoin to a pyramid scheme. Even so, they insisted on making the technology completely different from its individual functions.

Disclosure Learn Additional

Fintech Zoom, head of blockchain information, is a media center that strives to meet the best journalistic requirements and adheres to a strict set of publishing insurance policies. Fintech Zoom is an unbiased operating subsidiary of the Digital Foreign Money Group that invests in cryptocurrencies and blockchain startups.

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