The Brazilian development bank BNDES has signed a memorandum of understanding with the German development bank KfW to improve transparency and efficiency in the use of public resources, which finance the development of the Amazon Fund, which is now powered by blockchain technology.
BNDES has been appointed to manage the Amazon Fund, which is responsible for raising funds and allocating resources; Monitoring and monitoring of actions and supported projects; Accountability; and reporting results obtained in a continuous and transparent manner; in addition to the role of the executive secretariat of the Amazon Fund Guidance Committee.
At the age of eight, Amazonas ended 2016 with a portfolio of 86 supported projects worth R $ 1.4 billion ($ 617 million), 47% of which has already been disbursed. It has received donations from Norway, Germany and Petrobras amounting to R $ 2.8 billion ($ 1.13 billion).
Blockchain technology should be the subject of cooperation between BNDES and KfW.
The memorandum is to be signed between the development banks of Brazil and Germany, which provides for the test concept in the Amazon Fund
The National Bank for Economic and Social Development (BNDES) has exchanged experiences with companies, research centers and financial institutions dedicated to the development of blockchain technologies. In this context, the BNDES Board approved a letter of intent with the German Development Bank KfW to promote cooperation between the two institutions in improving the TruBudget software.
The tool was developed by KfW to improve transparency and efficiency in the use of public funding for development. Although TruBudget is based on Bitcoin-like technology, it does not use a virtual currency: it’s a workflow tool that uses a private, non-public blockchain like Bitcoin.
BNDES will pilot the application to the Amazon Fund by May. The fund, which is managed by BNDES, includes the German bank as one of the donors and carries out non-repayable financial transactions on which the memorandum focuses.
Under the terms of the agreement, KfW will grant BNDES access to the software repository and manage all other platforms and related tools required to work and improve TruBudget. The German bank will also provide technical support for the application of the tool.
During the tests, BNDES will regularly share information about the use of TruBudget among participants. The Bank will not use it for any commercial purpose or claim intellectual property for the Software or any modified version thereof. In the joint implementation of the project KfW intends to formalize the TruBudget license in the open-source modality.
Write: Richard Abermann