Why Brazil’s Central Bank is planning to open Blockchain Data Exchange for Governors
Brazil will soon have a new blockchain platform to ascertain the legitimacy of data exchange between the county’s financial authorities. During the launch, Brazil’s Central Bank (BCB) credited blockchain technologies for its capability to provide a flat network of data. This is in addition to the incontrovertible storage of information.
The system christened ‘Pier’ is used in swapping data connected to the authorization processes of fiscal corporations. These procedures, including administrator operations as well as management of corporate entities are mainly controlled by the central bank as an institution.
The main objective for building the technology is to do away with the classified nature of outmoded corporate models. The initiative is also meant to assist regulators in bypassing centralized entities especially during communications. The new technology will also go a long way in preventing third parties from interfering with information.
This is mainly due to the fact that the platform is tasked with storing every data by making use of cryptographic signatures, which are not easy to forge. By incorporating the blockchain technology, Pier as an initiative will go a long way in guaranteeing safety of data stored.
In spite of the fact that Brazil’s Central Bank previously likened Bitcoin to a pyramid scheme, the institution has in recent times unreservedly been experimenting with the blockchain technology, which has in many ways eliminated third parties in its transactions.
In November last year, the Central Bank of Brazil informed CoinDesk that it was working towards restating operations with the state-of-the-art iteration of R3’s Corda distributed ledger platform. In many ways, the older technology was considered to be undeveloped.
Over and above, it is currently not clear which blockchain technology that Pier is based on. However, in an interview, an official from the BCB noted that the bank was developing proofs-of-concept on four main platforms. These include Hyperledger Fabric, JPMorgan’s Quorum, Ethereum, as well as Corda.