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 challenges of implementation? The responses were discussed among experts and representatives of companies and entities this afternoon during Tokenize 2024, organized by Núclea, reference in infrastructure solutions for digital transactions and data intelligence, and by Febraban.
The importance of governance in the sector was discussed at the event, with reflections on risks, cost reduction, intermediation in the chain, solutions, security and regulation.
In panel 4, that 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, declared that technology brings a different functionality to the market, to have a more efficient market, "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 extent, you close, does not open, because it generates insecurity and needs to have controls. We need to stop talking so much about decentralization and think about scalability, what is the point that is today, reflects the executive.
Jochen Mielke, CEO of B3 Digitais, analyzed that the DLT environment is a collaboration game. "O Brazil, in general, has taken the lead not only due to the work of the institutions, but also by the regulators. To work, the channels have to be open, collaborative process, avoid the creation of various subnets and elements that end up creating some type of friction in the system and always keeping in mind the three questions: will there be less friction? It will be cheaper? And it will be safer?”.
For Leandro Sciammarella, blockchain and tokenization specialist at Núclea, there is a confusion in thinking that we must do everything all chain, since there are parts that are not present in this structure. "I still believe a lot in the hybrid model", "we need to implement Blockchain or DLT where it adds value", defend. Sciammarella also emphasized the importance of thinking about the field of disintermediation, formed by several other fields. "A second stage is missing", what is going deep into the scenarios. There is a charge for using the technology, but we have to be careful not to disintermediate everything, but finding the points of evolution.”
George Marcel Smetana, innovation specialist at Bradesco, highlights that "there is a fallacy in the world of blockchain: intermediation". The executive emphasizes that it is necessary to first think about the requirements, and then in technological solutions. "It is not a question of having a central depository or not", "I think more about the issue of accountability than about technological infrastructure". Smetana points out that a major discomfort in the current market is the perception of value, remembering that competition is responsible for reducing price
No fifth panel of the day, "Practical applications of blockchain in the regulated market and implementation challenges", the partner and Head of Market Infrastructure at BEE4, Paloma Sevilha, brought the company's experience to explain the potential benefits of this innovation. "We have an optimization opportunity with this new technology". The reconciliation that, it used to be done on the day, with the blockchain, this is done in real time, so for each transaction that 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 do this processing, you can, throughout the day, have you noticed any disparity, this already brings efficiency and reduces risks.
The mediator, Cesar Kobayashi, Superintendent of Tokenization and New Assets of Núclea, highlighted that the financial system is 'all about' integration and connectivity. And naturally, blockchain brings a technological paradigm to do this in a different way – and through this different way also include other benefits, "how programmability and automation", highlighted.
The Director of the CVM, Marina Copola, explained that innovation processes occur with some frequency in the capital financial market – this comes in cycles, how it is happening now. "The good thing about this is that it is not the first time regulators are dealing with a cycle of innovation". So, how to go through this cycle receiving these advantages, benefits, with safety, transparency, privacy, but without giving up those that are the guiding pillars of capital market regulation from the very beginning?”
The signing of the Cooperation Agreement between CVM and the National Federation of Associations of Central Bank Employees (Fenasbac) on innovation also took place – the purpose of the partnership is to have new initiatives for experimental laboratories.
No closing, the Vice President of Finance, RI and Legal of Núclea, Joyce Saika, highlighted the importance of the integration of agencies in this advancement of legislation. "We need this community to continue discussing", because this collaboration is very important for regulatory advancement in Brazil, being 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 headquarters of the CVM, addressing such important aspects of the use of DLT in regulated infrastructures and participants. The panels provided space for discussions about the potential of the applications, considering the challenges of implementation in a technical and pragmatic way, considering the dynamics of market operation and regulatory concepts, says Patricia Stille, co-founder and CEO of BEE4, as a balance of the event.
The Tokenize 2024 – "Blockchain in regulated market infrastructure: challenges and opportunities" is an event by Núclea, 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 started with the president of the CVM, John Peter Birth, followed by the first panel, "Regulation of Digital Assets: How to establish standards for the future"?”, by himself and with Joaquim Kavakama (Núclea), Luis Vicente de Chiara (Febraban) and Carlos Ratto (Safra), with moderation by Antônio Berwanger (SDM).
Next, the panel "Blockchain in the Capital Markets Value Propositions that Justify Strategic Decisions" took place, moderated by Rodrigo Furiato (Núclea) and with the participation of 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 stock exchanges to D+1 and the potential of DREX in the settlement of securities", with Patricia Stille (BEE4) as the mediator and André Portilho (BTG Pactual), Marcelo Belandrino (JP Morgan), Margareth Noda (CVM) and Otto Lobo (CVM) as panelists.
In the afternoon, the panel "Myths and Reality about the use of Blockchain in Regulated Market Infrastructures" took place, with Felippe Barretto (CVM) as the 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 mediate 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
