The Brazilian government recently announced that more than 214 million Brazilians will soon use blockchain technology for digital identification.
Rio de Janeiro, Goiás and Paraná will be the first states to issue on-chain digital identity documents through a private blockchain developed by Brazil’s national data processing service Serpro chain. According to a law promulgated on September 25, Brazil will be able to issue identity documents supported by blockchain technology starting from November 6.
Serpro is a technology company under the jurisdiction of the Brazilian Ministry of Economy. Serpro President Alexandre Amorim said that due to its immutable and decentralized characteristics, blockchain is well-deserved as the underlying technology of Brazil’s digital identity plan. Alexandre Amorim said:
Blockchain technology plays an important role in protecting personal data and preventing fraud, providing Brazilian citizens with a safer digital experience. Utilizing the b-Cadastros blockchain platform can significantly enhance the security and reliability of the National Identity Card program.
The blockchain network will facilitate the search, issuance and modification of new identity cards and tax registration numbers. This blockchain technology relies on a solution developed by Web3 company Extrimian and utilizes the Ethereum scaling protocol zkSync Era based on zero-knowledge rollups.
Extrimian CEO Guillermo Villanueva stressed that this development has extraordinary significance for governance in Latin America. He said this could set a model for integrating blockchain technology to promote public welfare.
According to the Brazilian government, the nationwide national identity program is important for targeting organized crime, promoting cooperation among government agencies, providing easier access to services and streamlining administrative records. The city of Buenos Aires in Argentina recently announced a similar initiative that allows citizens to access identity documents through digital wallets.
Over the past few years, Brazil has been working to unify the issuance of identity documents across nearly 30 states. According to a statement from the Brazilian government, the newly adopted technology will make the exchange of data between the Federal Tax Agency and government departments more secure.
Another important development in Brazil is the upcoming launch of a central bank digital currency (CBDC). The country’s government announced in August this year that it would rename CBDC Drex and planned to expand companies’ access to capital through a tokenization system related to Drex. According to developers in Brazil, Drex's code was found to allow central banks to freeze funds or reduce balances.
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