Brazilian Development Bank Sets Deadline for Completion of Blockchain Network

The Brazilian Development Bank (BNDES) has partnered with the Court of Accounts of the Union (TCU), a constitutional institution of the Brazilian government, to complete the development of the Brazilian Blockchain Network. The partnership, established through a memorandum of understanding, establishes a deadline for the completion of the project, which should be finished in five years.

Brazilian Blockchain Network Development Powered by a New Partnership

New details are available on the development of the Brazilian Blockchain Network, a common rail that will be used as a base for the development of apps by public institutions in the country. The details were revealed in Official Gazette of the country. The Brazilian Development Bank (BNDES), the institution responsible for the creation of this platform, has partnered with the Court of Accounts of the Union (TCU), a comptroller institution of the Brazilian state, to advance the development of the aforementioned blockchain.

The cooperation agreement between these two organizations implies that each will work on the subject without transferring resources between them. The agreement, which was signed by Gustavo Henrique Moreira Montezano, Ricardo Wiering de Barros (executive director for the BNDES), and Ana Arraes (president of the Court of Accounts of the Union), determines a deadline of 60 months for the completion of the joint project.

Objectives of the Brazilian Blockchain Network

Gladstone Arantes, a director of the Brazilian Development Bank, explained the importance of the network as a base for the creation of other projects on top of it. According to Arantes, the objective of this project will be to stop creating new projects from scratch, and instead use a common platform for all public purposes.

One of the motivations behind this is to improve the comptroller system of the public administration, increasing the transparency of public spending, which would be reflected in the blockchain. The partnership with the Court of Accounts of the Union is a step in this direction.

The project, which was launched back in 2018, announced some key details of its structure in March when it was revealed it would use proof-of-authority consensus on top of the Hyperledger Besu 2.0 platform. This setup will not allow mining activities on the network. At that time, Arantes explained this was to keep the system simple so anyone could examine it.

The Brazilian government has also reported recently it will run a pilot test for its CBDC this year, and a unified cryptocurrency legal framework is also expected to be approved by the Brazilian Congress in the coming months.