Brazil has a long history of corrupt politicians with scandals up to the presidential level that has had a global impact, not to mention riddled the home political ground with chaos and uncertainty.
From the Petrobras scandal involving multiple politicians notably the former president Luiz Inacio Lula da Silva and multiple allegations against Dilma Rousseff (former president, impeached in August 2016) to her successor Michel Temer, the list is quite long.
Did that dark past somehow influence the Brazilian financial regulators to create a Blockchain platform to screen the politicians?
Four of Brazil’s financial regulatory organizations have come together to create a blockchain platform for information sharing. The platform will be used to run background checks on politicians and corporations.
Brazil’s PIER for Financial Background Check
The platform named PIER was initially developed by the country’s central bank, Banco Central do Brasil. The project saw the involvement of the Brazilian private insurance superintendent, along with the local securities regulator. All of the above-mentioned bodies helped in the creation of the database.
According to reports, the social security supervisor of Brazil will also join the DLT project. There are talks of strengthening the PIER database with the information collected by the trade boards, judiciary bodies, and international financial organizations.
“The PIER platform will streamline the interdepartmental data, which will drastically reduce the time needed to evaluate the financial background of an individual”, commented Daniel Bichuette, Deputy Head, Financial System Organization department, Banco Central do Brasil.
The institutions involved with the PIER database will be able to access information from disciplinary processes and restrictions involving administrators and businesses, along with the financial history of an individual or an organization, run diagnostics of a company, and gather vital information concerning the legal and financial standing of an individual or organization.
“Using DLT for Pier enables the use of tried and tested technology whose native functionalities mean that there is need to build a system from scratch”, said Eduardo Weller, software specialist, Banco Central do Brasil.
The development of PIER commenced two years ago and it was first mentioned by the country’s Central Bank in 2018.
Although the launch date has not been revealed, the project collaborators are hopeful that the initiative will bring for transparency and trust within the political and financial machinery curbing corrupt practices.