Brazil is modernizing its bureaucratic system by harnessing the power of the Ethereum blockchain.
Banco Central do Brasil (BCB), the country’s central bank, recently launched a blockchain-based data-sharing tool that’s been in development since 2017. BCB has invested over $250,000 on the project – the Platform for Information Integration of Regulatory Entities (PIER).
PIER runs on the Quorum blockchain, which is an Ethereum-based platform developed by banking giant JP Morgan for big enterprises. BNAmericas reports that the blockchain solution also uses Microsoft’s Azure cloud computing service.
Before PIER, financial regulators in Brazil relied on snail mail and letters to send inquiries and access data from other agencies. The process of getting a response could take weeks. The new Ethereum-based financial database digitizes all paper-based data to expedite rapid and secure inter-agency communication.
Tasks are dramatically streamlined reducing processing from hours and days to seconds. The platform also keeps track of all queries.
In addition to the BCB, other financial institutions are using PIER, including securities watchdog Comissão de Valores Mobiliários (CVM) and insurance regulator Private Insurance Superintendence (SUSEP).
Social security superintendency PREVIC is currently testing the platform with plans to use the data clearinghouse in the future.
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