Brazilian Banks Launch a Blockchain-Based ID Platform to Prevent Scams

These financial institutions would have a unique blockchain platform to verify identities. Governmental agencies are investigating how to take advantage of blockchain

With the aim of authenticating and verifying digital signatures using mobile devices, avoiding crimes and unauthorized uses of the financial system, CIP, a facilitator of Brazilian banking and financial infrastructure, officially launched its identification (ID) blockchain platform.

The tool will use Hyperledger Fabric, thanks to a partnership with IBM, according to local media.

The name of the identity solution is “Device ID”, and it will have the participation of nine banks to also integrate them into Brazil’s national compensation system, the Brazilian Payment System (SPB).

“Brazilian banks have been studying how to use blockchain technology for a long time, but they were not doing it all together. So we decided to create a group and unify all these actions, which is very important to achieve the standardization of all banks”, said Joaquim Kiyoshi Kavakama, Director of Febraban, the national banking association of Brazil.

The official added that, in this way, banking institutions would be “at the forefront” when it comes to taking advantage of blockchain technology.

A few days ago, Mauricio Minas, the Vice President of Brazil’s biggest bank, Bradesco, announced that the main local banks would present a unique blockchain platform to work with it soon.

A few days ago, it was revealed that the platform was under development, and Bradesco representatives confirmed that an official launch would be made this week at the CIAB Febraban conference, which is about disruptive technologies.

This development takes place along with other advances. Ripple, a major industry firm, decided to open an office in that country. This company gives priority to Brazil before getting expanded in Latin America.

Blockchain at the Governmental Level

At the same time, the Brazilian authorities remain vigilant to bad practices and it is watching to those who seek to commit fraud in the digital space. In this sense, a fraud scheme involving 55,000 investors was eliminated last month.

Regarding the use of blockchain technology in other fields, the Brazilian government is considering a bill that would make all local units of the public administration promote new technologies such as blockchain.

Last June 11^th, a group of ten federal officials from different political parties and states presented the new bill, number PL 3443/2019, to the Chamber of Deputies (the lower house) of the National Congress of Brazil.

If the bill is approved, the divisions of the federal and state governments would apply emerging technologies such as Artificial Intelligence (AI) and blockchain with the aim to improve public services, according to the report.

Brazil has given numerous stepstowards the adoption of blockchain technology and cryptoactives. In fact, the Federal Collection of Brazil is interested in conducting the new fiscal registry of natural persons through a system based on blockchain technology.

Also, the President of the Chamber of Deputies of Brazil, Rodrigo Maia,ordered the creation of a commission to consider the regulation of the cryptocurrency in the country.

The commission will be responsible for regulating local activities around Bitcoin (BTC) and other digital assets. This commission would be made up of 34 members, in accordance with the Rules of Procedure of the Chamber.

For the time being, it is expected that in the coming weeks, the decisions made by said country, that seeks to be friendly with digital assets as a current form of payment and a possible means of investment, will be announced soon.

By María Rodríguez