In today’s modern society, there are several reasons why digital transformation has become huge. However, many ventures are missing opportunities since they only run digital projects instead of fully transforming their organization. Digital transformation is no longer a choice for business owners – it plays a crucial role to survive. Many experts believe that Blockchain technology can deliver the most significant transformation and dramatic changes in business functions for the next years.
For the past decades, bitcoin and other cryptocurrencies have been around the industry, and most people associate Blockchain technology with it. However, it is only the tip of the iceberg, and it only scratches the surface of its capabilities. It has gained much attention in several businesses. Some people think that Blockchain technology could transform many industries from healthcare to politics. Although its concept is not that simple, its idea is not difficult to understand when you dig deeper. But, what is Blockchain technology?
The Blockchain Potential: Brazil’s New Initiative Explained
Experts describe Blockchain technology as an ever-evolving technology which replaces the need for third-party institutions to trust voting activities and financial contracts. Large financial institutions and governments tap Blockchain technology to achieve optimal efficiency on its potential application on trade settlement and record-keeping, to name a few. The future application developed through Blockchain has a tendency to improve the security of shared information among business entities as well as enhance opportunities for tracing digital assets.
Digital transformation is one of the more complex challenges a venture may undertake, and Blockchain makes the transition more manageable. According to the report of Cointelegraph Brazil last June 13, several primary executives from the government and financial institutions have shared ideas to design and develop a regulatory sandbox model which prey on new technologies akin to Blockchain transformation. This new initiative connects many fiscal government institutions in Brazil including the Securities and Change Fee (CVM), Ministry of Economy’s Special Secretariat for Finance, and Central Bank of Brazil to conform to the digital transformation which affects various financial sectors in the country.
CVM revealed that the technologies that have been emerging in today’s generation, including artificial intelligence, robotics, and Blockchain, had paved the way for the establishment of new business models. These developments lead to new and high-quality products and services. Moreover, CVM added that the model regulators had expressed their intentions to impose the rules in related sectors to maintain the order of each industry. The participating regulators would also need to join forces as parts of the initiative for the technology-related activities that go through on at least one regulated market.
Meanwhile, the Financial Action Task Force and Monetary Process Pressure recently added plans to release an announcement that aims to clarify participating jurisdictions should oversee the digital sector.
If there is one particular thing, it is the fact that Blockchain is not going away. Government and financial authorities from Brazil are starting to realize the impact of the technology beyond being a vehicle that enables digital transformation.