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Central Bank of Brazil Introduces Blockchain Data Exchange Platform for Regulators

The Central Bank of Brazil (Banco Central do Brasil) has introduced a new blockchain data-sharing platform to certify the authenticity of information exchanged between financial regulators and authorities in the country. The central bank announced that the blockchain based platform was designed to ensure secure data sharing between itself and other domestic financial regulators, such as the Brazilian Securities and Exchange Commission (CVM), the Superintendence of Private Insurance (SUSEP) and National Superintendence of Complementary Pensions (PREVIC).
The data exchange platform is named the Information Integration Platform for Regulators (PIER) was designed and developed by Brazil’s Central bank IT unit (Deinf) and it will be used by financial regulators to exchange data and information on general authorization processes of financial institutions such as administrative and managerial processes, and the overall conduct of employees. Additional information not related to administrative sanctioning procedures can also be exchanged on the platform provided that mutual interest is shown. Banco Central do Brasil also credited blockchain technology for its ability to offer a horizontal system of information, as well as featuring an immutable data storage capacity to ensure that no regulator manipulates any info on the platform because every data request is cryptographically recorded. The deputy head of the Central Bank’s IT department of informatics, Deinf, Aristides Cavalcante stated that:
“Furthermore, as the blockchain platform records every data request using cryptographic signatures, it is possible to certify at any moment the authorship, and that no entity has tampered with the data, and thus guaranteeing information authenticity.”
PIER Is Based On Blockchain Technology
By adopting the use of the blockchain technology for the PIER platform, the new data exchange platform is expected to wipe out the classified nature of business models and assist monetary regulators in bypassing all centralized units. The deputy head of the Central Bank’s IT unit, department of informatics (Deinf), Aristides Cavalcante explained that:
“Currently there is some exchange of information regarding authorization processes, which are not automated yet: staff from one of the institutions contact the others by letters or e-mails. Even the few queries that are automated by software still require some degree of human intervention. Staff from the CVM, for instance, may access the information by using the BCB IT system Unicad.”
Banco Central do Brasil also credited blockchain technology for its ability to offer a horizontal system of information, as well as featuring an immutable data storage capacity to ensure that no regulator manipulates any info on the platform because every data request is cryptographically recorded. Aristides Cavalcante added that:
“Furthermore, as the blockchain platform records every data request using cryptographic signatures, it is possible to certify at any moment the authorship, and that no entity has tampered with the data, and thus guaranteeing information authenticity.”
The platform is presently in alpha testing and plans to be fully operational by the end of 2018. This project is just another effort by the country’s central bank to explore and experiment with different applications of the blockchain technology in various aspects of their financial sector.

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