According to a government announcement, over 214 million Brazilians will soon use blockchain technology for digital identity. The first three states to issue identification cards on-chain through a private blockchain created by Serpro, Brazil’s national data processing agency, will be Rio de Janeiro, Goiás, and Paraná. By November 6, the entire nation is anticipated to issue identity documents using blockchain technology.
The immutability and decentralization of blockchain make it a suitable technology for the nation’s digital identification initiative, according to Alexandre Amorim, president of Serpro. The national ID initiative aims to combat organized crime, promote collaboration among government agencies, make it easier to access services and improve administrative record-keeping. The newly chosen system will make it possible for the Federal Revenue and other government agencies to share data more securely. Brazil has been attempting to standardize identification issuing throughout its nearly 30 states.
Brazil is also working on a central bank digital currency (CBDC) called Drex in addition to the digital identity project. According to a local developer, the central bank intends to increase corporate access to finance through a tokenization system linked to the Drex, which will enable a central authority to freeze cash or lower holdings.