On May 13 this year, ABBC announced the creation of an institute for studies on various topics concerning the Brazilian financial system. Several important authorities were present on the occasion, such as directors Diogo Guillen (Economic Policy), Otávio Damaso (Regulation) and Ailton Santos (Supervision), as well as others who represented the financial sector.
In this way, ABBC tends to assist Brazil in providing very important analyses of technologies and operational issues, for example, that involve the financial system, as in the case of the impacts of blockchain and AI on the market. As a result, the new era of Brazil’s digital economy will see new strengths in both technologies and compliance with the regulatory parts of operations.
What is ABBC?
ABBC stands for Brazilian Banking Association and is an important entity in Brazil’s financial system. It has more than 90 members, most of whom are financial institutions and banks that use its services for different functions, such as composing documents and checks, for example.
What is the purpose of the ABBC Institute for Academic Studies of the Financial System (IEASF/ABBC)?
The aim of the ABBC institute is to promote studies, research and analysis of the Brazilian financial system. Thus, regulatory issues, operational issues and the development of new technologies become points of interest for the institute.
All these ABBC studies aim to find the weaknesses and challenges that the Brazilian financial system needs to overcome. In this way, there will also be an interest in understanding more about other topics that can be added to the new functionalities of the financial market, such as cyber security, artificial intelligence and digital assets.
Impacts of Blockchain and AI on the Brazilian financial system
Improvements in transparency and the possibility of analyzing high volumes of data are some examples of the impact of blockchain and AI on the Brazilian financial system. In addition to being the subject of ABBC research, the two marked a major revolution in the way financial transactions are carried out in the country.
Even though the blockchain system historically emerged as the main basis for Bitcoin, its ability to generate benefits was such that the technology was embraced in the financial market. Thus, the union with AI manages to solve a series of challenges that constantly arise with market operations in a practical and safe way, points that tend to be studied more and more with ABBC.
Tokenized funds are great examples of the transformations that blockchain has offered the market. Through all the features that the technology presents, investors can relate to applications in a much more confident way due to the security that blockchain offers in fulfilling digital agreements, for example.
Improved transparency and security
Increased transparency and security is one of the major points of interest that blockchain and AI provide to the Brazilian financial market. This is because the system allows for the creation of immutable contracts, a factor responsible for greatly reducing the number of frauds and thus generating more confidence for those applying in the market.
One of the most important pieces of knowledge for anyone wishing to become such a professional is about VASPs. These resources stand out as decisive agents for the growth of the digitalized economy simply because they act as a bridge between those who are interested in applying and those who wish to issue digital assets.
decentralization
Decentralization was one of the first reasons why the blockchain system became known in the financial market, especially in the tokenization of assets. Through the technologies present in this system, it is possible to carry out financial transactions without the need for intermediaries, which removes that centralization of power over various assets that bothers investors so much.
With the tokenization of the Brazilian economy, for example, it is possible to see how the idea of trading tokens more intensely is already widely accepted and commented on by market scholars. All the technological quality offered by blockchain and decentralization are some of the reasons why the tokenization process is increasingly studied and improved.
One of the proofs of the growth of the tokenized economy in Brazil is the creation of DREX. Through this digital currency, it is possible to access the tokens with much greater convenience, revealing how the Brazilian financial system is ready to embrace the idea of tokenizing assets and contribute more and more to the growth of the area.
Greater accessibility to the market
Greater accessibility to the digital asset market is another point provided by blockchain and AI precisely because of the greater formation of trust. In addition, the diversity of digital asset options makes it possible for various investors to invest, thus democratizing access to the financial market efficiently and safely.
It’s worth mentioning that the cost reduction caused by decentralization is another key factor in making the token market increasingly accessible to investors. Because there aren’t as many intermediaries as in ordinary applications, it’s possible to carry out more practical transactions without compromising on the security offered.
Because of this increase in accessibility, it is noticeable that the number of applicators is growing considerably in this market. Consequently, there will be a lot of demand for investment advisors to help investors make decisions to take advantage of the opportunities offered by the tokenized market.
Analysis of large volumes of data
Artificial intelligence is characterized by its ability to analyze huge amounts of data. In this way, conclusions tend to be more accurate, operations more efficient and the services offered to customers more personalized.
Two of the most relevant applications of AI are in risk analysis and fraud detection. Through these points, it is possible to manage the investment portfolio more carefully and, at the same time, avoid financial losses by checking for suspicious activity and continuously verifying financial data.
With regard to the personalization of services, this is a very interesting point for those who want to understand how to become a self-employed investment advisor. Understanding this stage is essential for the professional to have the best possible understanding of which applications are ideal for clients, in order to study them and help them make the right choices.
Brazil at the forefront of financial innovation
With ABBC’s announcement, it is notable that Brazil will see a much greater growth trend in digitalized financial services. Given all this context, the best way for you to take advantage of this trend is to create a BLOCKBR account!
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