South America Moves Forward with Digital Identities

Two of the most populous countries in South America have announced plans for harnessing blockchain based digital identity protocols to streamline and secure citizen access to public services.

Brazil

In a move that promises to transform the way its citizens interact with the government, Brazil has unveiled ambitious plans to digitise its national identity programme through the integration of blockchain technology. This undertaking, encompassing a population of more than 200 million people, will mark a turning point in the country’s technological evolution.

The government’s vision begins in the states of Rio de Janeiro, Goiás and Paraná, where citizens will soon have access to on-chain identification documents. A decree issued in February 2022 mandated that all issuing bodies should be capable of issuing such documents.

To facilitate this, the Brazilian government has partnered with a private blockchain developed by Serpro, the country’s national data processing service. By using blockchain technology, the government aims to introduce cutting- edge security measures, enhance operational efficiency, and streamline bureaucratic processes.

Beyond the technology advancements, this initiative holds the potential to integrate various government sectors spanning nearly 30 states, which should play a pivotal role in the government’s ongoing battle against organised crime.

In tandem with its strides toward digitising the national identity programme, the Brazilian government is making significant headway in its plans to launch a Central Bank Digital Currency (CBDC). Additionally, detailed blueprints for tokenising assets are being unveiled.

Argentina

The developments in Brazil come hot on the heels of a similar initiative in neighbouring Argentina – the third most populous country in South America.

Argentina’s capital city, Buenos Aires, will soon be rolling out a blockchain- based and open-source digital identity protocol, QuarkID, in an effort to streamline citizen access to public services. For the initial rollout, Buenos Aires citizens will need to complete the existing biometric know-your-customer procedures for identity verification to create a QuarkID wallet.

Buenos Aires citizens will be able to download the protocol’s native wallet to claim essential personal documents such as birth and marriage certificates, according to a government statement.

The move is in collaboration with on-chain digital identity solutions firm Extrimian and Matter Labs, the company behind Ethereum layer-2 blockchain zkSync Era. Built atop Matter Labs’ tech stack, the QuarkID wallet takes advantage of zkSync Era’s blockchain framework for consolidated document storage. ZkSync Era serves as the settlement layer for the QuarkID platform, ensuring the proper ownership of each stored document.

QuarkID’s service intends to operate on the principle of self-sovereignty, allowing individuals complete control over their personal data. While documentation will initially be limited, the Buenos Aires government is planning a phased introduction of various official credentials.

Starting in November, citizens will be able to access proof of income and academic attendance certificates – key documents for benefits claims – within their digital wallets.

The full roadmap for QuarkID, set to be released by year-end, aims to extend the service to over 2.5 million users by expanding the list of available credentials.