The blockchain tool will allow access to information for participants, thus avoiding bureaucracy.
As an alternative to improve the operation of public entities, the Securities and Exchange Commission of Brazil (CVM) published a statement to indicate that they will use a blockchain platform to reduce bureaucracy. The main objective is to facilitate the action of administrative processes.
The developers of the project hope the platform to guide Brazil’s main regulatory entities in a better direction. They want to potentiate the security of the work done digitally.
According to an announcement published on the official website of the CVM last Wednesday April 1st, the name of the platform is PIER, and its base will be mainly on blockchain technology. The Information Integration Platform for Regulators (PIER) will serve as an information transmission channel between CVM, the Superintendence of Private Insurance (Susep), and the Central Bank of Brazil (Bacen).
Using a blockchain platform on the Brazilian public regulatory system will help improve security in the exchange of vital and private information. Besides, it will have a record of visits to the registries and the available information. This characteristic could reduce unnecessary uses in the searches and, at the same time, take an immutable control of all the movements that the authorized entities make.
The system would dramatically reduce bureaucracy and strengthen other areas such as research. This is what Frederico Shu, who is part of the Data Science Development Center in Brazil, explained.
“PIER offers wider, safer and more direct access to the information of the participants regulated by the institutions involved, strengthening and reducing bureaucracy in the tasks of supervision, investigation, and identification of irregularities”, he said.
One Blockchain For Three Regulatory Bodies
The initiative seeks to integrate all the systems of the aforementioned public bodies. PIER will serve to administer, manage, and store all kinds of information related to the nature of each entity.
In a similar sense, Frederico Farías, analyst of Management Systems at CVM, mentioned that this new system will be more flexible with the user. It will also allow consulting more than two data at the same time, streamlining administrative procedures and movements.
“Research can still be directed at a single organ or all of them. There are many opportunities to work with the existing dataset and it will all depend on the needs of the users”, Farías said.
Through the blockchain system, the procedures that the workers previously did traditionally or by email can now be ready with the platform’s program. This will automate the data to the latest available version and help the user “with the security and transparency that blockchain technology offers”.
It is important to mention that, during 2019, the CVM issued a statement noting that they were not against cryptocurrencies and that they would not put obstacles to their development in the local economy.
Besides, Marcelo Barbosa, President of CVM, commented that they are investigating cryptocurrencies to prevent their use in the future from generating a negative impact on the Brazilian markets.
By María Rodríguez