Central Bank of Brazil to Deploy Hyperledger Verification for Brazilian Banks Payment System

Blockchain technology solutions are becoming quite popular in many of the world’s mainstream sectors and banking is one that seems to be at the top of the list.

There currently are quite a few central banks that are actively looking into issuing Central Bank Digital Currencies (CBDCs) but apart from those, many commercial banks are also trying to use the technology to ease all the processes and the services they offer to numerous clients.

These solutions are being researched or already being deployed in many countries and now, Brazil will be making a notable adoption.

Banks in Brazil will now be deploying a new blockchain technology identity solution to be used for easy authentication and verification of information of all customers and will be doing this by using information from the customer’s mobile phone, SIM card and other data.

The service is driven by the Hyperledger Fabric platform and is jointly produced by IBM, the Central Bank of Brazil and CIP which is a non-profit civil association which incorporates the Brazilian Payment System (SPB).

How Will It Work?

The platform will reportedly be a very simple one. A user will be allowed to download the application from their bank for whatever needs they might have. When this happens, the user’s data will be shared on the hyperledger network after being encrypted.

If the same user downloads another bank’s application for use, the data already in the network will be used to authenticate the download to create ease of use between banks. This is provided the user uses the same ID and phone across banks.

The platform is expected to be presented and officially launched at one of Latin America’s foremost banking technology events, CIAB Febraban, which will take place from the 11th to the 13th of June, 2019. The platform, after its launch, will be the very first of its kind, built on blockchain technology and intended to be jointly shared by all Brazilian banking institutions.

Other Brazilian Banking Blockchain Solutions

Banco Bradesco, one of Brazil’s leading banks, has now officially joined the Marco Polo blockchain network.

The network created by R3 – an enterprise blockchain group – will now be used by the leading bank to help its services by improving cost implications, speeding up transactions and also ensuring a substantial level of transparency. The Banco Bradesco with total assets valued at $338.2 billion and a market capitalization of $49.1 billion, announced this with a press release.