Sep 6, 2018

 Tool will allow tracking the application of public resources in financing to public entities, or operations with non-reimbursable resources 

Those interested in demonstrating their solution should submit their proposals to the Bank by November 7. 

The Brazilian Development Bank (BNDES) launched a public consultation this Thursday in search of components that employ blockchain technology and could compose BNDESToken. The objective is to identify solutions for account management, transaction tracking and account association with CNPJs or CPFs compatible with a blockchain that uses smart contracts incorporated into BNDESToken. Interested parties should submit their proposals to the Bank by November 7. 

BNDESToken is a solution designed to track the application of public resources in credit operations with public entities and non-reimbursable operations, providing society with information on how these resources are promoting the country’s development in an open and honest manner. 

Each BNDESToken unit is equivalent to R$ 1. Therefore, in practice, BNDESToken works as a digital representation of the real released by BNDES in some types of operations, analogous to a negotiable instrument demonstrating a certain credit for future resource receipt.

The solution prototype was implemented using smart contracts from the Ethereum blockchain. The core of the solution is an ERC-20 contract that represents BNDESToken. The contract contains the balances of all entities that have BNDESToken, and provides methods such as resources transfer, issuance and token destruction, besides balance visualization.

To use BNDESToken prototype, customers and suppliers need to create accounts on the Ethereum blockchain, associating these accounts with their CNPJ by means of a standard ICP-Brazil digital certificate. After this association is made, BNDES can release funds to the client’s account. The customer can use the solution to pay suppliers who are rendering services for the BNDES-funded project. Upon receipt of BNDESTokens, suppliers should request BNDES their redemption, the only option to convert them into reais.

In a proof of concept already performed, BNDES demonstrated the feasibility of BNDESToken. The Bank is now seeking to advance the implementation of new components, aiming to create a robust solution that meets functional requirements and consider important issues, such as usability and security. 

Thus, gains are expected both in the application of better market solutions for each of the challenges found and in stimulating the market for solutions related to blockchain technology in Brazil. 

More information on the requirements of the solution to be incorporated into BNDESToken is available in the Public Call Notice on the website: www.bndes.gov.br/consultablockchain