17 hours ago
Otto Lobo, president of the CVM, Brazil’s SEC equivalent, stressed that mandatory tokenization combined with AI supervision was indispensable to modernize accepted surveillance methods made obsolete by the money structure’s size, with a nett worthy of $2.32 trillion.
Key Takeaways
- Brazil’s CVM is pushing mandatory plus tokenization and AI to overhaul its overwhelmed $2.32T money market.
- The regulator is investigating DLTs and astute contracts to automate compliance, alteration audit trails, and chopped risks.
- This displacement cuts money introduction costs to $20 arsenic Brazil’s B3 banal speech builds a 2027 tokenization platform.
Brazil’s SEC Defends Mandatory Tokenization For Market Surveillance Purposes
The CVM, Brazil’s equivalent of the U.S. Securities and Exchange Commission, is pushing plus tokenization arsenic a cardinal element to modernize marketplace operation guardrails successful operation with artificial intelligence-powered surveillance.
Otto Lobo, President of the CVM, stressed that a mandatory modulation to plus tokenization is indispensable to overhaul the existent marketplace supervision infrastructure, which has been overwhelmed by the maturation of the money manufacture successful the country.
Valor Econômico pointed retired that the money manufacture has reached a nett worthy of $2.32 trillion with implicit 34,000 progressive structures, making accepted oversight methods obsolete owed to the monolithic standard of operations.
The modernization process, expected to adhd 1,200 caller employees successful the adjacent fewer years, follows a Supreme Court determination that allows the CVM to clasp 70% of its inspection interest revenue, making this determination to much modern oversight structures possible.
During a conference, Lobo acknowledged that decentralized ledger technologies (DLTs) offered an borderline implicit accepted methods, enabling contiguous settlements, eliminating counterparty risk, registering a continuous audit trail, and including the last beneficiaries of each transaction successful a integer record.
Lobo besides revealed that wealth laundering prevention procedures would beryllium implemented astatine the plus level utilizing astute contracts, simplifying the exertion of compliance and know-your-customer requirements for regulators.
He besides highlighted that this modernization would besides payment customers, with introduction costs to wealth marketplace funds arsenic debased arsenic $20, opening the marketplace to caller customers with a potentially ample addressable market.
“We’re already investigating 3 DLTs, with the anticipation of creating autochthonal integer assets, with the anticipation of past overseeing that marketplace successful a precise antithetic way,” helium revealed, remarking that maintaining marketplace integrity is important for tokenized assets.
Lobo refers to the experimental aviator program conducted by the CVM’s tokenization moving radical to representation declaration logic and trial cybersecurity risks earlier a afloat blockchain rollout. At the time, Lobo declared that “tokenization is already transforming superior marketplace infrastructure and brings applicable opportunities to summation efficiency, innovation, and entree to caller concern models.”
B3, Brazil’s banal exchange, is advancing tokenization services that volition run successful parallel, sharing liquidity with accepted marketplace securities. The speech expects this level to beryllium acceptable by 2027.
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