Brazilian Regulators Are Creating A Screening DLT Platform For Politicians

The latest crypto regulation news show that Brazil is upping the game on regulatory efforts and is now working on creating a new platform that will perform background checks on political representatives as well as corporations. Four of the largest Brazilian regulators (institutions) are now collaborating to build this streamlined data-sharing platform based on blockchain.

The platform is dubbed PIER and has been developed by the central bank of Brazil, Banco Central do Brasil (BCB). The platform saw initial participation from the BCB, as well as the Brazilian private insurance superintendent and the local securities regulator to inform its database.

As we can also see from the blockchain news, Brazil’s social security supervisor is also set to participate in the program too. The Brazilian regulators are ready to push things forward, and the government of the country is also contemplating incorporating data collected by the country’s judiciary, trade boards and additional financial bodies into the PIER system.

According to Daniel Bichuette who is the deputy head of the BCB financial system organization department, the streamlining of inter-departmental data is “drastically reducing” the time to evaluate the financial background of an entity.

Moreover, institutions querying this PIER database are also able to quickly access data “from punitive processes and restrictions from companies and administrators,” an entity’s “history of performance in the financial system” – including technical capacity and organization conduct, and “information on the participation of individuals and legal entities in the share capital and shareholding control.”

The Brazilian regulators are describing the partnership as a “fruitful endeavour” which paved the way for “important synergies” between the participating regulatory authorities. According to one software specialist with the BCB named Eduardo Weller, using distributed ledger technology (DLT) for PIER allows the use of a “decentralized, tested technology, whose native functionalities mean that there is no need to build the system from scratch.”

Weller also emphasized that digital signatures are what guarantees the “authenticity of messages exchanged”; the “integrity of data recorded,” and “eliminates a single point of failure [and] central entity that can defraud data.”

PIER has undergone even two years of development – it was initially revealed by the central bank in June 2018.