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Brazil to Launch Blockchain Network to Monitor Public Resources

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Brazil to Launch Blockchain Network to Monitor Public Resources

Brazil has found a new use case for blockchain technology. The country is tapping into the decentralized nature of blockchain to eradicate corruption in the public sector. This is not the first time a country is turning towards blockchain for use in management purposes and not just to support digital assets.

Brazil uses blockchain to fight corruption

The new blockchain network for the Brazilian government was unveiled on May 30. The launch of this blockchain network was made possible through a partnership between the Court of Accounts of Uniam (TCU) and the Brazilian Development Bank (BNDES).

The launch of this initiative was streamed on the YouTube channel of the TCU as a way to promote public participation. The event’s objective was to discuss the technical nature of the project according to the experience of the guests invited. The guests invited for this event include executives of the company, public officials, and tertiary institutions’ representatives.

The blockchain project is still in the works, and it will be known as the Brazilian Blockchain Network (RBB). The RBB will be deployed in public institutions during the initial phase to streamline services. RBB will be tasked with improving customer services and making it easier for the government to trace the use of public expenditure.

Brazil has been faced with the menace of corruption, and this is the latest effort by the government to bring transparency and efficiency to the public administration sector. The recent initiative is beyond what many regulators globally have done, focusing more on the regulation of cryptocurrencies.

One of the main features of blockchain technology is its incorruptible nature. While blockchain eliminates third parties’ use, it also makes it easy for corruption, embezzlement, and illegal activities to be detected because it is like a public ledger.

The president of Uniam’s TCU, Ana Arraes, said that the initiative of using blockchain technology was promoted during the second half of 2019. She further added that the initiative had found its way to the top of government discussions because of its benefits during the audit process of public data.

Arraes also added that “the use of blockchain technology becomes widely discussed because it allows greater protection, transparency, and integrity in the storage of information in public databases in order to allow auditability of the data placed.”

The manager of the Information Technology Area of BNDES, Joao Alexandre Lopes, noted that once the project is finalized and made official, it would be the first step towards the further adoption of blockchain in other initiatives that will benefit the public.

Adoption of blockchain in government institutions

The use of blockchain in government institutions has increased over the past few years, especially in Latin America. Some other countries that have adopted blockchain include Argentina, Colombia, and Peru to audit state activities.

Towards the end of last year, Colombia unveiled the pilot phase of a project that will fight corruption in the public sector. The pilot phase lasted for around three months, but the country has yet to issue a report about the status and progress of the project.

In Peru, blockchain technology is used in auditing to boost the traceability of public contracts. Peru partnered with LACChain to create a blockchain network used as a testing platform for creating digital identity models and traceability solutions.

The companies that adopt blockchain will use it to effectively solve environmental problems. The country supported this initiative in 2019 before developing an interest in launching a central bank digital currency (CBDC).

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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