Blockchain to control public spending

Por 14 junio, 2022 No Comments

The past month, Brazil launched a blockchain network (RBB) oriented to connect public and private institutions, providing more transparency to public spending. We asked our partners from Alliott Global Alliance, Madrona Advogados, what they as experts make of this news and they answered as follows:

As it is well known, public spending in Brazil (and Latin America in general) always challenges public trust, due to lack of transparency. On the other hand, many different associations and study centers try to use the available tools to obtain and analyze information, trying to link taxes collected and how they are used.

One important step on this matter was the approval of Law 12.527 in November 18h, 2011 which provided the population with right to access public information and it is being used in different situations. However, access to information is subject to the government’s response, which does not necessarily happen on time and with the desired level of details.

It seems that now we are seeing a change in that aspect with the creation of the Brazil Blockchain Network (RBB). It provides access to a different level of information. The signature of a cooperation agreement between The National Bank for Economic and Social Development (BNDES) and the Federal Audit Court (TCU) is a very important step to more comprehensive and transparent information.

The network, public and not-for-profit, will be national in scope and will connect participating institutions in a governance structure and technological infrastructure with the aim of facilitating the adoption of blockchain technology in solutions aimed at the public interest. To assess the real impact, we still need to keep monitoring and see how it is implemented. It is, for sure, a relevant step in direction to transparency.

Marcelo Fonseca Vicentini