Brazil is set to issue digital identification documents for its more than 214 million citizens using blockchain technology.
The states of Rio de Janeiro, Goiás, and Paraná will be the first to adopt this new system, utilizing a private blockchain developed by Serpro, Brazil’s national data processing service, according to an official announcement by the government.
The announcement says that the entire country should be able to issue identity documents through blockchain technology by November 6.
The decision to leverage blockchain technology for digital identity stems from its inherent properties of immutability and decentralization.
Alexandre Amorim, president of Serpro, said that blockchain technology is crucial for protecting personal data and preventing fraud.
He claimed that the b-Cadastros blockchain platform significantly enhances the security and reliability of the National Identity Card project, offering a more secure digital experience for Brazilian citizens.
“Blockchain technology plays a critical role in protecting personal data and preventing fraud, offering a more secure digital experience for Brazilian citizens,” Amorim said in a statement.
“Utilizing the b-Cadastros blockchain platform significantly enhances the security and reliability of the National Identity Card project.”
Digital IDs Could Be Used to Combat Crimes
The Brazilian government views the national ID project as a vital tool in combating organized crime and facilitating collaboration between government sectors.
It will also simplify access to services and streamline administrative records.
Brazil has been working towards unifying identity issuance across its nearly 30 states for several years.
The adoption of blockchain technology will enable secure data exchange between the Federal Revenue and various government departments, improving efficiency and data integrity.
Brazil’s move aligns with a similar initiative in Buenos Aires, Argentina, where residents can access their identity documents through a digital wallet.
Likewise, the Commonwealth of Dominica partnered with Huobi last year to issue Dominica’s national token, Dominica Coin (DMC), and its Digital Identity (DID).
At the time, the island nation said that holders of its digital identity could open a bank or financial account, apply for loans, register companies that provide digital services, claim digital currency airdrops, and use it for Know Your Customer (KYC) verification.
In October last year, banking giant JP Morgan also announced that it is developing a digital identity offering empowering users to “choose identity credentials you want to share throughout your interactions online, across the web3, the metaverse, DeFi, and beyond.”
Brazil Pushing Forward with CBDC Plans
In addition to the digital identity project, Brazil is also making strides in the development of a central bank digital currency (CBDC).
In August, the government provided more details about the project, which has been rebranded as Drex.
The CBDC aims to expand business access to capital through a tokenization system associated with the Drex.
More recently, the central bank of Brazil vowed to tighten rules and strengthen its oversight of crypto platforms amid growing crypto adoption in the country.
Roberto Campos Neto, the governor of Brazil’s central bank, said last week that “cryptocurrency imports” by Brazilian residents have risen 44.2% in the period between January and August 2023 compared to the same period last year.
“We understand that a lot is connected to tax evasion or linked to illicit activities,” Neto said while stressing that oversight of the crypto sector in Brazil will be strengthened going forward.
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