Brazil introduces Blockchain Network to fight against corruption

Brazil introduces Blockchain Network to fight against corruption

Brazil has recently introduced its new blockchain network with an aim to integrate all public expenses into the network in order to increase traceability and transparency in spending. The network was launched after the Brazilian Development Bank (BNDES) and the Court of Accounts of Uniam (TCU) reached a mutual agreement to corporate together.

The development work for the blockchain network commenced in 2018. It was built on Hyperledger Besu 2.0 which works on the proof-of-authority consensus mechanism. This mechanism will allow state representatives to maintain control of the network.

In March 2022, Gladstone Arantes, the head of blockchain initiatives at BNDES, gave insights into the project stating that once the infrastructure is built, it will provide a trustworthy platform to institutions on which they can build their applications.

Brazil’s aim toward blockchain and digital currency is not only to simply regulate crypto, but also to leverage blockchain networks to help fight corruption.

President of Uniam’s TCU, Ana Arraes explained that the network offers several advantages in auditing the data provided for public expenditure. She said that the utilization of blockchain technology is gaining wide traction because it enables great transparency, protection, and integrity in storing information in public databases.

João Alexandre Lopes, Manager of the Information Technology, BNDES, stated that once the project is formalized the partners will be able to enjoy the infrastructure and benefits for the general interest of the public interest.

Besides this, Brazil is evaluating the practicality of a stable coin tagged Real Digital. Initially this year, the country chose nine partners, to develop its central bank digital currency. According to the Central Bank, it will launch a pilot program this year and by 2024. 

Blockchain technology has been adopted for use in similar ways in several European and Latin American countries. For instance, Colombia carried out a pilot project in 2021 to testify the use of blockchain in fighting embezzlement and corruption.

Credit Source: https://www.coinspeaker.com/brazil-blockchain-network-public/