by Gabriel Rizza Ferraz
The Central Bank of Brazil approved the rules for Cycle 1 of its Regulatory Sandbox, which aims to stimulate financial and electronic payment innovation. The strategic priorities defined by the financial authority are:
- solutions for the foreign exchange market
- promotion of the capital market through mechanisms of synergy with the credit market
- promotion of credit for microentrepreneurs and small businesses
- solutions for Open Banking
- solutions for Pix (instant payment system)
- solutions for the rural credit market
- financial and payment solutions with potential effects of stimulating financial inclusion
- promoting sustainable finance
Aspects such as degree of maturity, innovation, magnitude of risks and technical-operational capacity of the entities that develop the projects will also be analyzed. As well as the strict adequacy of the rules to prevent money laundering and to combat the financing of terrorism and to comply with the Bank’s rules on handling complaints made by customers and users, among other aspects.
Cycle 1 is limited to 10 participants and the limit can be increased by up to 50%. The registration period runs from 22 February to 19 March 2021. Selection and authorization will take place in March and April 2021.
- BC # Agenda: BC approves the rules for Cycle 1 of its Regulatory Sandbox (in Portuguese)
- BCB Resolution No. 50 of 12/16/2020 (in Portuguese)
About the Author
Gabriel Rizza Ferraz is Policy Analyst at the Brazilian Micro and Small Business Support Service