Transactions based on blockchain is the objective of the new Digital Financial System of Brazil | CriptoNoticias

Transactions based on blockchain is the objective of the new Digital Financial System of Brazil | CriptoNoticias

Banrisul, Banco de Brasil, Caja Economica Federal, Santander Brasil and Siccob will set up an interbank network based on blockchain technology that will allow the exchange of securities between customers

The information, published by Banrisul on its website, informs that the network is called the Digital Financial System (SFD) and was announced by the director of Planning and Attention and Investor Relations ] by Banrisul, Julio Brunet, in the framework of the 11th International IT Forum, organized by Banrisul from May 23 to 24, in Brazil.

Brunet made the announcement in the company of Márcio Rodrigues, architecture manager Corporate Sicoob; Bruno Schmidt, manager of the software engineering division of the Bank of Brazil; and Paulo da Costa, executive manager of IT architecture at the Federal Economic Fund.

In this regard, it is explained that the Digital Financial System will use the blockchain technology to design the new network, through which the clients of these Banks will only need to download the mobile banking application from their financial institution and use their phone number as the main data to make transfers securely. This simplifies the payment and transfer process by eliminating the amount of data necessary to complete the transaction, such as personal identification and bank account numbers, among others.

In this sense, Brunet said that the project aims at the development of a new financial ecosystem in which the entities involved will be able to create their own applications taking advantage of the technological innovations that have arisen around the so-called block chain.

He adds that the SFD will be launched once the business areas of the banks reach a definitive agreement. In this regard, Bruno Schmidt said that the Bank of Brazil has already created a laboratory to structure the project, where a team of representatives of the entities involved will meet.

In this way, according to Marcio Rodrigues on behalf of Sicoob, the new SFD would become the first authorized blockchain network in financial institutions in Brazil adding that the idea is to use this new technology to move towards new models of payment systems that facilitate the review and remodeling of banking products.

This new Digital Financial System that will be implemented by Brazilian entities may have a significant impact on banking in that country, considering that the 5 institutions involved are among the most important of the financial system of Brazil. Three of them: Banco de Brasil, Caja Económica Federal and Banco Santander Brasil, are among the first in the ranking of the most important banks in Latin America.

The adoption of blockchain and Fintech in Brazil

During the International IT Forum, Banrisul also announced that it will be the anchor investor of the FinTech Venture Fund, the first business corporation fund dedicated to financial technology in Brazil, where it is estimated that there are more than 400 companies of FinTech, according to calculations of the director of information technology of the bank, Jorge Krug.

About it, the executive assured that the company will invest $ 25 million in this fund , in which startups and executives with experience in technology, financial markets and fund management will participate.

In this way, the Brazilian financial system shows signs of his interest in the use of new technologies. In this regard, the Brazilian Federation of Banks (FEBRABAN) created a Blockchain Working Group, made up of 15 financial entities, which presented last April the results of some concept tests carried out with Distributed Accounting Technology (DLT).

For its part, at the governmental level, the Central Bank of Brazil at the end of last year revealed that it works in a blockchain application with the distributed accounting platform of the company R3CEV, Corda; although its progress in this regard began in September 2017, when it produced a document that collects the impressions and results of a study carried out by a working group of the bank on the applications of the DLT.

Featured image by phaelshoots / stock.adobe.com

Share!