The Brazilian government has announced that it will soon be implementing blockchain technology for digital identity, with over 214 million Brazilians expected to be using this technology. The states of Rio de Janeiro, Goiás, and Paraná will be the first to issue identification documents on the blockchain, using a private blockchain developed by Serpro, Brazil’s national data processing service. By November 6, the entire country should be able to issue identity documents through blockchain technology.
The president of Serpro, Alexandre Amorim, highlighted the benefits of blockchain for the country’s digital identification project, stating that the technology plays a critical role in protecting personal data and preventing fraud. The immutability and decentralization of blockchain offer a more secure digital experience for Brazilian citizens. Utilizing the b-Cadastros blockchain platform significantly enhances the security and reliability of the National Identity Card project.
The national ID project is seen as crucial in targeting organized crime and facilitating cooperation between government sectors. It will also offer a simpler way for citizens to access services and streamline administrative records. This initiative is similar to one introduced by the city of Buenos Aires in Argentina, where residents can access identity documents through a digital wallet.
In recent years, Brazil has been working on unifying identity issuance across its almost 30 states. The adoption of blockchain technology will enable a more secure data exchange between the Federal Revenue and government departments, contributing to overall efficiency and security.
Another significant development in Brazil is the upcoming launch of a central bank digital currency (CBDC). In August, the government shared more details about the project, including its rebranding to Drex. The central bank plans to expand business access to capital through a tokenization system associated with the digital currency. However, concerns have been raised about the Drex code, as it was discovered to allow a central authority to freeze funds or reduce balances, according to a local developer.
Overall, Brazil’s adoption of blockchain technology for digital identity and the introduction of a CBDC demonstrate the country’s commitment to leveraging innovative technologies for secure and efficient operations. These developments have significant implications for identity management and financial transactions, potentially transforming various sectors of the Brazilian economy.
