- The Brazilian Development Bank established the Brazilian Blockchain network in May.
- The legislation acknowledges improving data accessibility and openness using blockchain.
A growing number of industries and governments are beginning to use blockchain, a key component of cryptocurrency. Sao Paulo’s new municipal data and transparency law recognizes blockchain as a tool that may be utilized to facilitate government operations.
In the law, blockchain is described as a distributed digital ledger that cannot be altered. And may be used to record transactions and keep tabs on assets. While the legislation acknowledges the potential of this technology to improve data accessibility and openness. It does not specify how this technology should be used.
Moreover, given the lack of clarity on how this term is to be put into effect. Several experts have speculated that its placement in the statute was just coincidental.
Identifying Corruption and Ensuring Compliance
The document’s authors, though, stood by their decision to incorporate this technology into the law in the way they did. The law’s author, Maria De Carli, defended the broad terminology used to describe blockchain technology in the text. De Carli was quoted by local outlets as saying that specific technological applications should not be spelled out in legislation, but rather addressed with the municipal law.
Since blockchain technology provides a public view of each transaction, it may be used to help in the identification of corruption and to ensure compliance for public servers, two examples that De Carli cited.
Moreover, there are parallel efforts underway on a national scale. The Brazilian Development Bank established the Brazilian Blockchain network in May. It is a blockchain initiative with the goal of providing a foundation upon which other public institutions may create their own decentralized applications to improve the openness of governance.
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