Brazil’s Central Bank Develops Blockchain Data Sharing Platform for Financial Regulators
The ledger, called the Information Integration Platform for Regulators (Pier), will be used by regulators to exchange information on general authorization processes of financial institutions, ranging from administrative processes to the conduct of employees.
As a decentralized ledger, blockchain technology was specifically picked by the BSB for providing a ‘horizontal network of information-sharing’ that negates the need for a centralizing entity that could otherwise weld ‘operational hierarchical superiority’ over others, BCB’s IT department deputy chief Aristides Cavalcante explained.
Furthermore, blockchain’s core characteristic of immutability while ensuring that no regulator tampers with any shred of information since every data request is recorded cryptographically guarantees information authenticity, the central bank official said
It’s a significant leap in digitizing and automating communication between regulators in Brazil.
“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,” Cavalcante revealed.” Even the few queries that are automated by software still require some degree of human intervention.”
