Brazil’s financial regulators launched an information-sharing blockchain platform called PIER on Wednesday.
At launch, the blockchain pulls data from three of Brazil’s four major financial institutions: the private insurance superintendent (SUSEP), the Banco Central do Brasil (BCB) and securities regulator (CVM), PIER’s main backers. Social security supervisor PREVIC also plans to join.
Once it does, PIER will unite Brazil’s entire financial oversight ecosystem in what CVM called “a vast integrated database” that accelerates the speed with which each can administer its slice of Brazil’s $1.9 trillion economy – Latin America’s largest by far.
One use of the platform would be to conduct background checks on political appointees, according to BCB.
“Our objective is that this system promotes gains to the market, given the more efficient, safe and adequate supervision and enforcement to the new technological scenario that we are experiencing” said CVM President Marcelo Barbosa in a press release.
PIER grants bureaucrats access to their sister agencies’ real-time records on company sanctions, financial performance and business associates “in seconds,” according to BCB. It’s an easy, online bridge between previously siloed data troves.
“This makes it possible to drastically reduce the time period for assessing requirements,” said Daniel Bichuette, deputy head of the BCB’s Financial System Organization Department, in the press release.
Each agency envisions using PIER to improve their oversight efficiency. For example, BCB said in a press release that PIER can streamline its vetting of elected officials appointed to financial institution posts – specifically the examination of their qualifications and business reputation. The central bank is charged with conducting such investigations.
CVM, for its part, said PIER can boost corporate investigations.
The project is expected to reduce the time it takes to conduct cross-regulator…