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New Blockchain Identity Solution To Be Implemented By Brazilian Banks

Blockchain is being widely used by banks all across the world for various reasons. Whether it is for technical support, or cross border payments, blockchain has proven it’s worth and has emerged as an important tool in these technologically advanced times.

Recently, a new standardized blockchain identity solution has been implemented by Brazilian banks as an identity solution. The technology is powered by the Hyperledger Fabric-platform.

This new platform will serve as a tool to authenticate and verify virtual identities for users’ bank accounts by using an individual’s mobile phone and SIM card information. Additionally, the platform will also make use of other smartphone-derived personal data related to the users.

All this data will come together to generate a secure ID, that will be recorded on a blockchain and will be used by institutions to verify access credentials.

This platform has been co-developed by IBM and CIP,  which is the country’s central bank. This technology is likely to be integrated with a national payment system called the Brazilian Payment System (SPB), which will be used by all banks and financial institutions in the country.

The new technology is most likely to be launched at CIAB Febraban, a major Latin American banking technology event, on June 11. This has been confirmed by both IBM and the central bank. The complete details of the product will be revealed at the event.

If all goes according to plan, the platform is all set to become the first multi-institution banking solution powered by blockchain. This may set a exemplary precedent for other countries to follow suit.