What is myth and what is truth about the use of Blockchain in Regulated Market Infrastructures? What are the practical applications of Blockchain in this sector and the implementation challenges? The responses were discussed among specialists and representatives of companies and entities this afternoon during Tokenize 2024, organized by Núclea, a reference in infrastructure solutions for digital transactions and data intelligence, and by Febraban.
The importance of segment governance was discussed at the event, with reflections on risks, cost reduction, supply chain intermediation, solutions, security, and regulation.
In panel 4,which opened the afternoon with the theme "Myths and Reality about the Use of Blockchain in Regulated Market Infrastructures," Guto Antunes, Head of Digital Assets at Itaú Digital Assets, stated that the technology brings a different functionality to the market to make it more efficient, "but at the same time, we hear a lot that they are trying to centralize the market. When you try to decentralize to a certain point, you close it, you don't open it, because it creates insecurity and controls are needed. We need to stop talking so much about decentralization and think about scalability, which is the point today," reflects the executive.
Jochen Mielke, CEO of B3 Digitais, analyzed that the DLT environment is a game of collaboration. Brazil, in general, has taken the lead not only through the work of institutions but also through regulators. For it to function, channels must be open, a collaborative process must be in place, the creation of multiple sub-networks and elements that end up causing friction in the system should be avoided, and always keep in mind the three questions: will there be less friction? Will it be cheaper? Will it be safer?
For Leandro Sciammarella, a blockchain and tokenization specialist at Núclea, there is a confusion in thinking that we should do everything all chain, since there are parts that are not present in this structure. "I still strongly believe in the hybrid model; we need to implement Blockchain or DLT where it adds value," he advocates. Sciammarella also emphasized the importance of thinking about the field of disintermediation, formed by several other fields. There is a second step, which is to delve into the scenarios. There is a demand to use the technology immediately, but we must be careful not to disintermediate everything, but rather to find the points of evolution.
George Marcel Smetana, an innovation specialist at Bradesco, emphasizes that "there is a fallacy in the blockchain world: the intermediary." The executive emphasizes that first it is necessary to consider the requirements, and then the technological solutions. "It's not a matter of having a central depository or not; I think more about the issue of accountability than the technological infrastructure." Smetana points out that the main annoyance of the current market is the perception of value, recalling that competition is responsible for lowering prices.
No fifth panel of the day"Practical applications of blockchain in the regulated market and implementation challenges," said Paloma Sevilha, partner and Head of Market Infrastructure at BEE4, who shared the company's experience to explain the potential benefits of this innovation. "We have an optimization opportunity with this new technology. The reconciliation that was previously done at the end of the day with the blockchain is now done in real time, so with each transaction I have, I am impacting the position of each individual wallet, of each client. You don't need to wait until the end of the day to process this; throughout the day, you can already notice some discrepancies, which already brings efficiency and reduces risks."
The mediator, Cesar Kobayashi, Superintendent of Tokenization and New Assets at Núclea, emphasized that the financial system is 'all about' integration and connectivity. "And naturally, blockchain brings a technological paradigm to do this differently – and through this different approach, also offer other benefits, such as programmability and automation," he highlighted.
CVM Director Marina Copola explained that innovation processes happen fairly frequently in the capital markets – they occur in cycles, as is happening now. "The good thing about this is that it's not the first time regulators are dealing with an innovation cycle. So, how to go through this cycle embracing these advantages and benefits with safety, transparency, and privacy, but without giving up the pillars that have always guided capital market regulation?"
The signing of the Cooperation Agreement between CVM and the National Federation of Associations of Central Bank Employees (Fenasbac) regarding innovation also took place – the aim of the partnership is to have new experimental laboratory initiatives.
No closing, the Vice President of Finance, IR, and Legal at Núclea, Joyce Saika, highlighted the importance of integrating the agencies in this legislative progress. "We need this community for us to continue discussing, because this collaboration is very important for regulatory progress in Brazil, making it a global reference in the adoption of these new technologies."
"It is a privilege to participate in such a relevant event for the market, not by chance at the CVM headquarters, addressing very important aspects of DLT use in infrastructures and regulated participants. The panels provided space for discussions on the potential of applications, considering the implementation challenges in a technical and pragmatic way, taking into account the market's operational dynamics and regulatory concepts," says Patricia Stille, co-founder and CEO of BEE4, as a summary of the event.
Tokenize 2024 – “Blockchain in regulated market infrastructure: challenges and opportunities” is an event by Núclea, a reference in infrastructure solutions for digital transactions and data intelligence, in conjunction with Febraban and institutional support from CVM.
Schedule
During the morning, the event began with the president of CVM, João Pedro Nascimento, followed by the first panel, "Digital Asset Regulation: How to Set Standards for the Future?", featuring himself along with Joaquim Kavakama (Núclea), Luis Vicente de Chiara (Febraban), and Carlos Ratto (Safra), moderated by Antônio Berwanger (SDM).
Next, the panel "Blockchain in the Capital Market: Value Propositions that Justify Strategic Decisions" took place, moderated by Rodrigo Furiato (Núclea) and featuring André Daré (Núclea), Daniel Maeda (CVM), Antônio Marcos Guimarães (Central Bank of Brazil), Eric Altafim (Itaú), and João Accioly (CVM).
The discussion that followed was about "Transition of the exchanges to D+1 and the potential of DREX in securities settlement," with Patricia Stille (BEE4) as moderator and panelists André Portilho (BTG Pactual), Marcelo Belandrino (JP Morgan), Margareth Noda (CVM), and Otto Lobo (CVM).
In the afternoon, the panel “Myths and Reality about the use of Blockchain in Regulated Market Infrastructures” took place, with Felippe Barretto (CVM) as mediator and Leandro Sciammarella (Núclea), George Marcel Smetana (Bradesco), Guto Antunes (Itaú Digital Assets) and Jochen Mielke (B3 Digitais).
In the fifth panel, the theme was "Practical applications of blockchain in the regulated market and implementation challenges." Cesar Kobayashi (Núclea) will moderate the conversation between Márcio Castro (RTM), Paloma Sevilha (BEE4), Marina Copola (CVM), and André Passaro (CVM).
To close the event, the closing discussion was about the “Regulatory agenda to accelerate innovation and market development”, with Joyce Saika (Núclea), Alexandre Pinheiro dos Santos (CVM) and Luis Vicente de Chiara (Febraban).
Service
TOKENIZE 2024 – “Blockchain in regulated market infrastructure: challenges and opportunities”
Implementation of the Nuclea and Febraban and institutional support from CVM
Data: October 10th
Time: 9am to 5pm
Tokenize 2024: Reflections on the use of Blockchain in infrastructures dominate the afternoon panels
