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Brazil to invest $5.7 million on Blockchain programs

The Federal Government of Brazil, through the Industrial Development Agency, will allocate a budget of 5.7 million dollars (about 25 million reais) for this 2020. With this, it seeks to implement a digital transformation program in which distributed accounting technology (DLT) or blockchain was included.

According to ordinance number 3,237, published this Tuesday, February 18, the objective is to implement security mechanisms in the digital environment. The authorities estimate that by the first half of 2020 a structured cybersecurity center must already be in place to disseminate actions in public agencies, industry 4.0 and critical infrastructure.

To meet this stage, the Ministry of Economy and the Special Secretariat of Productivity, Employment and Competitiveness, would use a blockchain in various federal agencies.

“The expected results are the increase in confidence in the digital environment, increased cyber resistance, increased availability of trained cybersecurity professionals and encourage the use of blockchain applications to increase the efficiency of public management,” the ordinance notes.

Brazil Is One of the top Latin America countries in Blockchain adoption

For the second half of this year, it is expected to have a list of blockchain applications for the collection of public data through a pilot project. The intention of the government is to create the necessary conditions for the promotion of digitalization in the Brazilian productive sector. It was not reported what type of blockchain would be adopted or if new networks will be built for a specific purpose.

Brazil is one of the most enthusiastic countries in Latin America when it comes to applying distributed accounting technology. In 2019 there were multiple use cases that included anti-bureaucracy programs, newborn baby registries or the one of the Brazilian Securities Commission, which announced that it would use a blockchain for investor registration.

Although its main use is related to cryptocurrencies such as bitcoin, on a global scale decentralized networks are also used for the certification of academic degrees, digital identity and product traceability, among other uses.

About Blockchain technology

Distributed accounting is an original Bitcoin technology as a digital system, created in 2009 by Satoshi Nakamoto, an unidentified character who laid the foundations of what would be the main cryptocurrency in the market.

The DLT allows two or more people to carry out any type of transaction without the intervention of intermediaries or trusted third parties. The data is immutable and is distributed in a distributed way among all the participants of the network.

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