Featured Product

    BCB Issues Digital Currency Guidance and Update on Regulatory Sandbox

    May 25, 2021

    BCB announced that it received 52 projects in the first cycle of the regulatory sandbox. The Strategic Committee for the Management of the Regulatory Sandbox (CESB) is analyzing the projects and BCB expects to choose 10 projects in the first cycle; the results are expected to be released on September 23, 2021. Additionally, BCB released general guidelines for the Brazilian Central Bank Digital Currency or CBDC.

    BCB has been promoting discussions, internally and internationally, for the possible development of a central bank digital currency that may keep up with the dynamic technological evolution of the Brazilian economy, enhance the efficiency of the retail payment system, foster new business models and other innovations based on technological advances, and favor participation of Brazil in regional and global economic scenarios, thus increasing efficiency in cross-border transactions. Post a preliminary assessment and discussions within the working group on CBDC, BCB has set out the guidelines for the potential development of a Brazilian digital currency, which are divided into three categories: functioning, legal guarantees, and technological premises. 

    The guidelines stipulate that, before the digital currency can be issued, the legal framework must be adjusted to give BCB the necessary powers to operate this new form of currency, thus ensuring the legal security of operations. The extent or nature of these adjustments cannot yet be determined. Compliance with bank secrecy and the General Data Protection Law (LGPD) and other applicable provisions is also a consideration. BCB states that the guarantee of mechanisms to prevent money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction is another requirement for a Brazilian CBDC. Having the ability, in the fulfillment of court orders, to track illegal transactions carried out using the digital real is of fundamental importance for BCB. For cross-border payments, it is essential to keep the local system open to the possibility of adopting internationally agreed standards, seeking interoperability solutions with central banks in other countries. Additionally, resilience to cyber-attacks must be compatible with that adopted in the critical infrastructure of the Brazilian financial market.

     

    Related Links (in Portuguese)

    Keywords: Americas, Brazil, Banking, Regulatory Sandbox, Fintech, Regtech, CBDC, Digital Currency, Digital Real, BCB

    Related Articles
    News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk

    The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.

    January 18, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7903