Blockchain Platform For Data Sharing Developed By Brazil’s Central Bank
Banco Central do Brasil (BCB), the central bank of Brazil, has developed a blockchain platform for the sharing of data with other national supervisory authorities.
Called the Information Integration Platform for Regulators (Pier), the platform enables data exchange between the central bank and other regulators, such as the Superintendence of Private Insurance (Susep), the Securities and Exchange Commission of Brazil (CVM), and the National Pension Funds Authority (Previc). The initiative is part of the “IntegraBC Project,” an institutional policy focused on integrating data mapping to enhance the supervision of regulated entities while preparing for new applicants.
The blockchain platform, which will be operational at the end of 2018, will be used for sharing data regarding the authorization processes for financial institutions. These include information on administrative sanctioning processes, the conduct of financial institutions’ officers, and the corporate control of entities regulated by the BCB.
Aristides Cavalcante, deputy head of BCB’s IT Department, said the central bank chose blockchain technology because it provides a horizontal network of information-sharing between the regulators connected to Pier.
“Traditional business models of information exchange between several entities require a centralizing entity, which ends up exercising a certain degree of operational hierarchical superiority over the remaining ones, which doesn’t necessarily reflect the institutional reality,” he says. “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.”
At the start, the central bank expects that institutions will allow access to information relative to administrative sanctioning processes, but any participant may grant access to any information considered to be of mutual interest as required.
“With Pier, any participant will be able to retrieve data almost immediately, and the platform will decrease error incidence by eliminating manual processes of data retrieval and sharing,” Cavalcante said. “Agility gains and fewer mistakes are expected to reduce costs.”
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