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, sets a timeline for completion of the project, which should be completed in five years.
The development of the Brazilian blockchain network is underway thanks to the new partnership
New details have emerged about the development of the Brazilian Blockchain Network, a common bus that will be used as a base for application development by the country’s public institutions. The details were disclosed in the Official Gazette of the country. The Brazilian Development Bank (BNDES), the institution responsible for the creation of this platform, partnered with the Court of Accounts of the Union (TCU), the Brazilian state control agency, to promote the development of the aforementioned blockchain.
The collaboration agreement between the two organizations implies that each will work on this topic without transferring resources between them. The agreement, signed by Gustavo Enrique Moreira Montesano, Ricardo Viering de Barros (executive director of BNDES) and Ana Arraes (president of the Union Accounts Chamber), sets a deadline of 60 months to complete the joint project.
Objectives of the Brazilian Blockchain Network
Gladstone Arantes, director of the Brazilian Development Bank, explained the importance of the network as a base for creating other projects based on it. According to Arantes, the goal of this project would 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 public administration’s controllers system, increasing the transparency of government spending, which will be reflected in the blockchain. The partnership with the Union Accounts Chamber is a step in this direction.
The project, which was launched back in 2018, announced some key details about its structure in March when it was revealed that it would use consensus based proof of authority on top of the Hyperledger Besu 2.0 platform. This structure would prevent mining activity on the network. At the time, Arantes explained that this was to keep the system simple so that anyone could learn it.
The Brazilian government also recently announced that it will pilot test its CBDC this year, and the Brazilian Congress is expected to approve a unified cryptocurrency legal framework in the coming months.
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