While some countries struggle with establishing regulation of cryptocurrencies, Brazil is taking a proactive approach to blockchain acceptance. The country has recently developed a blockchain platform that will allow financial regulators to share data. PIER, or the Integration Platform for Regulators, is a digital ledger that allows regulators to share data gathered on financial institutions. This data can include information on employee conduct and administrative procedures. It is also possible for regulators to share more data upon mutual agreement. PIER was developed by the Central Bank of Brazil. It will be tested extensively before a live version makes its appearance in late 2018. Various departments of the Brazilian government including the Securities and Exchange Commission of Brazil and the country's pension oversight department will be able to use the platform. Brazil seemingly has several motives for introducing the platform. One is the country's willingness to explore the benefits of blockchain technology. Proponents of the platform claim that the digital signatures and cryptographic elements of a blockchain provide greater security for data transfers. Another motive may be to prevent abuses of the financial system. The country was rocked by a money laundering scheme involving cryptocurrency and political candidates. By establishing its own platform, the country may be moving toward the creation of its own cryptocurrencies at some point in the future. PIER has the potential to improve information sharing between financial regulators. In theory, it can make the process of sharing data both more secure and cost-effective. Efficiency is much-needed when it comes to financial regulation. The inability of regulators to share data efficiently makes it much more difficult for agencies to pursue investigations of financial crimes. Many hope that the actions of Brazil will encourage other countries to take the same approach. Some believe that better understanding of blockchains and their benefits could remove apprehensions over the use of digital currency.
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