Investor Presentaiton
Annual Report
AR
2022
SUMMARY
WHO WE
ARE
OUR
STRENGTH
AND
OUR
RESOURCES
OUR
RESULTS
Agenda BC#
Special edition of the Financial and Technological
Innovations Laboratory: the LIFT Challenge Real
Digital
The Financial and Technological Innovations Laboratory
(LIFT) develops prototypes of innovative products,
as reported in a previous section of this report. All
projects are proposed by society, which makes LIFT an
open environment for direct society participation in the
promotion of innovations for the SFN.
The LIFT Challenge Real Digital was a LIFT's special edition,
with the objective of evaluating cases of use of digital
currency issued by the BCB, as well as its technological
viability. Importantly, this edition attracted 43 companies
from Brazil and from seven other countries (Germany,
United States, Israel, Mexico, Portugal, United Kingdom,
and Sweden).
The LIFT Challenge Real Digital allowed the BCB to get
closer to participants in the financial system regarding the
expectations and expected benefits of Digital BRL. Under
the initiative, participants presented several projects that
were developed with a close monitoring by the regulator,
who clarified doubts about regulations, and presented
suggestions to enhance the projects. Additionally, the BCB
advanced its understanding of the technologies involved
in the projects, which included, for example, decentralized
finance platforms and the internet of things.
In this process, new challenges not yet mapped by
participants were discovered in the joint discussions,
especially in terms of privacy and compliance with current
regulations. Thus, the BCB now has more maturity to face
the challenges of the Digital BRL Initiative, in addition to
a proper perspective of the technological limitations that
remain unresolved.
Nine out of the 47 projects presented were selected for
follow-up. The initiative aims to identify desired features
that an infrastructure for Digital BRL should have. This
infrastructure will be able to support the use cases provided
by the selected projects.
The application projects were the most varied, covering the
universe proposed in the call for papers, with applications
for delivery against payment, payment against payment,
internet of things, decentralized finance, and offline
payment solutions.
The BCB's Regulatory Sandbox
The Regulatory Sandbox is an environment in which the
BCB authorizes entities to test, for a specified period, an
innovative project in the financial or payment sectors, which
is somehow constrained by the BCB's present regulation.
The authorized institution must observe a specific set of
regulatory provisions that applies to controlled activities.
The sandbox was created to encourage innovation in
business models and foster competition among financial
product and service providers.
The BCB selected 7 among the 52 projects registered for
participation in the First Cycle of the Regulatory Sandbox.
In December 2021, the entities responsible for the selected
projects were authorized to begin their operation under the
Regulatory Sandbox regime for one year, extendable once
for the same period. Six of the authorized projects had their
finishing date postponed to December 2023, when the first
cycle will end. There is no regulatory provision for a new
postponement.
The Regulatory Sandbox provides an environment in which
the selected institutions can effectively implement new
business models that have the potential to deliver new and
better financial services and products for end users while
leading to the modernization of regulatory framework.
After the conclusion of the first cycle, it is expected that
the selected projects will prove to be effective and viable to
be permanently implemented under a suitable regulation.
Learn more.
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