Brazil is embarking on an innovative endeavour by adopting blockchain technology for digital identity verification, and this move is set to impact over 214 million citizens.

Three states — Rio de Janeiro, Goiás, and Paraná — are leading the way in issuing on-chain identification documents, facilitated by a private blockchain developed by Serpro, Brazil's national data processing service.

A recent decree issued on 25 September outlines a nationwide rollout of blockchain-based identity documents, with a target completion date set for 6 November.

Alexandre Amorim, President of Serpro, highlights the immutable and decentralised attributes of blockchain as an ideal choice for safeguarding personal data and preventing fraud.

The introduction of the b-Cadastros blockchain platform is expected to enhance the security and reliability of the National Identity Card project.

This initiative represents a significant step towards addressing organised crime, promoting cross-government collaboration, facilitating service access, and streamlining administrative records.

Notably, Buenos Aires, Argentina, is concurrently implementing a similar programme, allowing residents to access identity documents through digital wallets.

Brazil has been working diligently to centralise identity issuance across its nearly 30 states, with blockchain technology facilitating secure data exchange between the Federal Revenue and government agencies.

Progress and Concerns Surrounding Brazil's Central Bank Digital Currency “Drex”

Simultaneously, the nation is making headway in its pursuit of launching a central bank digital currency, recently rebranded as 'Drex.'

However, concerns persist about Drex's centralised control, with potential implications for fund freezing and balance adjustments, as pointed out by a local developer.