The Central Bank of Brazil (CVM) launched its Regulatory Sandbox program, in order to select innovative business models across nine BCB strategic priorities. The program seeks to promote market innovation and regulatory improvement and may result in definitive authorization for the selected projects.

The Central Bank of Brazil (BCB), through BCB Resolution n. 50/2020, launched the first cycle of its Regulatory Sandbox program, which will select innovative business models (projects) to participate in the innovative regulatory framework. The program is also ruled by CMN Resolution n. 4.865/2020 and BCB Resolution n. 29/2020.

Corporate enterprises can submit projects that, if selected by BCB, will be given special regulatory prioritization and supervision and, if successful, be authorized for definitive operation. The first cycle is limited to 10 selected projects, increasable by 50%, depending on a post-analysis decision of all submitted projects.

BCB Resolution n. 50/2020 established project requirements in article 4, while the evaluation criteria are defined by article 6. Nine BCB strategic priorities are presented in article 7 and will guide the project selection process. Other factors will be analyzed, including project maturity, innovation, risks, and operational capacity.

The nine strategic priorities are related to the National Financial System (SFN, in the Portuguese acronym) and the Brazilian Payments System (SPB, in the Portuguese acronym).

Corporate enterprises can submit projects though BCB Digital Protocol system from February 22 until March 19. BCB must analyze, select and disclose a list of participating companies until June 25 (can be postponed by up to 90 days). The Regulatory Sandbox – Cycle 1 will commence five business days after the selection is publicized.