The Central Bank of Brazil [BCB] and other regulators of the Brazilian Financial System [SFN] have decided to use the blockchain based technology platform – Information Integration Platform for Regulators [PIER]. It will be used to facilitate the exchange of information between the country’s financial regulators.
Pier was developed by the BCB’s IT Department [Deinf], and will be operational at the end of 2018. Aristides Cavalcante, deputy head of Deinf, said:
“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.”
The blockchain-based technology was chosen because it allows a horizontal network of information sharing. Cavalcante explains:
“Traditional business models of information exchange between several entities require a centralizing entity, which ends up exercising a certain degree of operational hierarchical superiority. 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 data being immutable makes it helpful for purposes of transparency or accountability. Furthermore, implementing blockchain has the advantage of “data on demand”. Each institution will determine which information, and its format, will be available within the network.
The BCB’s plan is, “(the BCB) 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 at any moment.”
“Together the automation of data searching and the guarantee of both authenticity and origin of the information will yield efficiency. 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. Agility gains and fewer mistakes are expected to reduce costs.”
The post Brazil’s Central Bank to use blockchain based platform PIER appeared first on AMBCrypto.