As Brazil continues to witness a surge in crypto adoption, the regulators are taking strategic action to nurture the attractiveness of the digital sector. An official announcement by the Brazilian authority revealed that the government plans to roll out a blockchain-powered digital identity (ID). The government targets to issue the new digital identity to around 214 million Brazilians.
Brazil Launching Digital ID
The issuance of the proposed ID will be launched according to the states. The report indicated that Brazil’s fast-growing states, including Rio de Janeiro, Parana and Goias, will be the first to receive the digital ID.
Interestingly, the new IDs will be issued through a private blockchain owned by Serpro, a Brazilian national data processing service. The Serpro system will generate ID documents in on-chain version.
The Brazilian government anticipates that over 216 million will have acquired the new ID by November 6 this year.
A statement issued by President Serpro Alexandre Amorim revealed that the unique characteristics of blockchain-inspired the government to leverage advanced technology in issuing digital IDs. The executive confirmed that the immutability and decentralization nature of blockchain technology perfectly meets the growing need for data protection.
Amorim admitted that blockchain technology plays a critical role in safeguarding the user’s confidential information. The official ascertained that blockchain technology has massive potential to prevent fraud and other online crimes.
Benefits of Digital ID
Amorim believes blockchain technology will provide the Brazilian with an exclusive digital experience. In his address, the executive stated that the b-Cadastros blockchain will support the Brazilian authority to improve the security and reliability of the National Identity Card project.
Referring to a recent report from a local government, the national ID program has played a vital role in combating crime. Also, the national ID will harmonize processes between several government agencies to enable collaboration.
The Brazilian government anticipates that the proposed ID will improve accessibility to services and enhance administrative tasks.
Launching the digital ID will offer a secure method to transfer sensitive information between federal revenue and other regulatory units.
Brazil Witnesses a Surge in Crypto Adoption
Earlier, the Brazilian government had recognized the benefits of blockchain technology. The latter demonstrated that Brazil has been pursuing ways to unify the issuance of ID across all states for years.
Besides launching the digital ID, the Brazilian authority has been working on developing its central bank digital currency (CBDC). In the past weeks, the central bank of Brazil renamed its CBDC, dubbed as digital real, to Drex.
The rebranding efforts demonstrate the evolution of the Brazilian currency from its fiat form to the digital version. The Brazilian authority plans to introduce a Drex code allowing the country’s apex bank to freeze and reduce balances.
Despite the developments made by the Brazilian authority, the adoption of cryptos has drastically increased in the past few months. A recent study demonstrated that Brazil has witnessed an increase in crypto imports. The spur in crypto adoption obliges the Brazilian authority to tighten the rules on digital assets.
Launching blockchain-focused ID mirrors the efforts made by Buenos Aires, a city in Argentina. Earlier in September, the Buenos Aires authority announced plans to issue IDs using the digital wallet.
The Argentinian authority anticipates to migrate its civil services to blockchain technology in the coming days. The government intends to generate on-chain birth and marriage certificates in a couple of weeks. Later, the authority will integrate health data and other crucial payment reports on the blockchain network in future.
