The Brazilian government has recently announced its plans to introduce blockchain technology for digital identity, with over 214 million Brazilians expected to benefit from this innovation.
Initially, the states of Rio de Janeiro, Goiás, and Paraná will pioneer the issuance of identification documents on a private blockchain system developed by Serpro, the national data processing service of Brazil. A decree issued on September 25th sets a target for the entire country to be able to issue identity documents using blockchain technology by November 6th.
Alexandre Amorim, the president of Serpro, emphasized that the immutability and decentralization inherent in blockchain technology make it an ideal choice for Brazil’s digital identification project.
“Blockchain technology plays a critical role in protecting personal data and preventing fraud, offering 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 local government views the national ID project as crucial in combating organized crime and facilitating intergovernmental collaboration. It aims to provide citizens with a simpler way to access services and streamline administrative records. A similar initiative has recently been launched in Buenos Aires, Argentina, allowing residents to access identity documents via a digital wallet.
In recent years, Brazil has been working to centralize identity issuance across its nearly 30 states. The adoption of blockchain technology will enhance the security of data exchange between the Federal Revenue and various government departments.
Another noteworthy development in the country is the upcoming launch of a central bank digital currency (CBDC), known as Drex. In August, the government provided additional details about this project and rebranded the digital currency. According to earlier reports, the central bank plans to expand business access to capital through a tokenization system associated with Drex. However, it’s worth noting that some local developers have raised concerns about the Drex code, as it allows a central authority to freeze funds or reduce balances.