Brazil has launched a blockchain platform that will enable its three central market regulators to bestow information seamlessly. The platform is recognized as PIER and was started collectively by the private insurance superintendent (SUSEP), the Securities and Exchanges Commission (CVM), and the Banco Central do Brasil (BCB).

While declaring the big move, the CVM said that the application of blockchain technology is a leap in quality for data security in Brazil. PIER will make access to information siloed by the three institutions broader, reliable, and more direct, an analyst with the CVM, Frederico Shu stated.

According to the declaration, Brazil’s other primary regulator, the National Superintendence of Complementary Welfare (PREVIC), plans to join shortly. Once it does, Brazil’s regulators will have streamlined the distribution of information between them, making it immediate and secure. Processes that would take ages and endless formal emails to finish, such as administering background checks on government appointees, will shortly take minutes.

Daniel Maeda, a senior officer at the CVM, explained the impact that the blockchain network will have, stating, “We avoid unnecessary redundancies in information requests to common regulators, from the moment that the institutions have access to the same database. Thus, we reduce bureaucracy and speed up obtaining information. This gain is extremely relevant for the CVM, which even considered the subject as a strategic project.”

PIER will communicate with various information systems from the three regulators, making it a significantly integrated database, CVM pointed out. It will source data linked to disciplinary actions against companies such as the registration status of companies, sanctioning actions, and the corporate structure of regulated companies.

Marcelo Barbosa, the president of the CVM, commented, “CVM has acted on several fronts in relation to innovation in the capital market, and PIER is yet another result of this effort, now in conjunction with other regulators. 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.”

The Banco Central do Brasil has been in the administration of the development and support of the system, a means that propelled in 2018. Over time, the watchdog expects to append more government databases outside the financial system. These involve national trade boards and the judiciary system.

The support for blockchain from Brazil’s watchdogs is severe opposition to their processing of digital currencies. They have challenged this industry for years now, enacting laws that make it near impossible for digital currency exchanges to succeed in the country. The exchanges have proceeded to close, with XDEX the latest scapegoat.