Brazilian banks are set to use a blockchain-powered Digital ID Platform for the South American country’s payments system, according to reports. The platform, will be developed by IBM in partnership with CIP, the country’s Interbank Payment Clearing House.
The Brazilian Payment System is used by all banks and financial institutions in Brazil for clearing and settlement of funds transfer, foreign currency operations, financial assets, and securities transactions.
The platform being developed is expected to be the first multi-institution banking platform powered by blockchain technology.
The solution will enable the validation and authentication of digital identities for users’ bank accounts by using their mobile phone and SIM card information as well as personal data obtained from other smart phones.
The combined data will generate a secure ID, which will be stored on a blockchain that can be used by institutions to authenticate credentials to give access. The blockchain-based identity solution is standardized for all banks and financial institutions in Brazil.
IBM and the central bank are also reportedly looking to introduce a unique bank focused blockchain solution during the key Latin American banking technology event CIAB Febraban on June 11.
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