Febraban, the Brazilian Federation of Banks with 126 associated members, has published tests of their research into blockchain technology.

The practices have been carried out since 2016, on several platforms including Corda, an initiative developed by global banking consortium R3. Proof of concept has been focused on most heavily throughout the research.

Proof of Concept

Febraban report that they were involved with the very first proof of concept known as Fingerprint, noting that Brazilian banks Itaú, Bradesco and B3 conducted the effort. The tests were developed in R3’s cloud lab, using fictitious personal records and Brazilian official documents of identification with the document storage.

Fingerprint allows multiple banks or clients to guarantee the immutability of shared data while preserving privacy and the traceability of information.

Bradesco bank also reportedly evaluates platforms through the program InovaBRA. One of the proof of concepts explored by the program relates to guarantees in financial operations, with the ability to secure communication connects through the blockchain.

Further ventures

Digital portfolio start-up e-Wally has also collaborated with Febraban, testing blockchain applications in Paraisópolis, one of the smallest regions of low-income in São Paulo.

The blockchain solution that was tested enables non-cost banking operations such as deposits and transfers while allowing any user to take ATM paper, earning per transaction fee. All bank transactions are blockchain encrypted, allowing distributed platform handling and auditing.

The Central Bank of Brazil was revealed by Febraban to be utilizing the Ethereum platform to support the Reserve Transfer System (STR), one of the primary components of the Brazilian Payment System (SPB). In the event of failures of the existing platforms, the Ethereum network will act as a support option.

Febraban has explored blockchain’s potential via their Blockchain Working Group, consisting of some of the biggest financial service providers in Brazil, including Banco do Brasil, Bancoob, Banrisul, Bradesco, BTG Pactual, Caixa, Citibank, Itaú Unibanco, JP Morgan, Safra, Santander as well as the Brazilian Central Bank, CIP.

The first blockchain event focused on the future use of technology was organized by the banking federation, where artificial intelligence was announced as the core future focus for the banking federation.

Notably, a survey conducted by Febraban in 2017 found that 65% of industry executives in Brazil said that their businesses are currently studying blockchain implementation, with 29% already evaluating analytics and cognitive computing.

The growing adoption of blockchain is crucial to helping cryptocurrencies become more widely adopted.

 

Comments are closed.

Check Also

Leading Crypto News Site CCN Shuts Down

One of the top blockchain and cryptocurrency news websites, CCN yesterday announced it wou…