BCB announced timeline and specifications for the first project cycle of the regulatory sandbox environment. In this regard, BCB approved a Resolution that deals with the requirements for establishment and execution of the first cycle of the controlled test environment for financial and payment innovations (Regulatory Sandbox); the Resolution also addresses the procedures and requirements applicable to the classification and authorization for participation in the test environment. Entities interested in participating in this cycle can register from February 22, 2021 to March 19, 2021 through the BCB Digital Protocol system. The period of selection and authorization of participants in this cycle will be from March 22, 2021 to June 25, 2021.
The first cycle will be limited to ten participants, though this number can be increased by up to 50% after analyzing the innovative projects. In addition, projects will be analyzed according to their degree of maturity, innovation, magnitude of risks, technical-operational capacity, and governance structure of the entity interested in the development of solutions. According to the BCB Regulation director, Otávio Damaso. "The proposals will be evaluated according to the strategic priorities defined by BCB with a view to improving services and possibilities in the National Financial and Payments systems." BCB listed the following themes as priorities:
- Fostering sustainable finance
- Solutions for foreign-exchange market, open banking, Pix, rural credit market, and increasing competition in National Financial and Payments systems
- Fostering credit for microentrepreneurs and small businesses and fostering capital market through mechanisms of synergy with the credit market
- Financial and payment solutions with potential effects of stimulating financial inclusion
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Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Sustainable Finance, Regtech, ESG, Open Banking, Credit Risk, BCB
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