Brazil Launched A Blockchain Network To Trace Public Expenditures

Brazil launched a blockchain network to trace public expenditures, leveraging the decentralized nature of the blockchain technology and battle corruption on public expenses so let’s read more today in our latest blockchain news today.

Brazil’s new government blockcahin network went live after a cooperation agreement between the Court of Accounts of Uniam and the Development Bank. The launch event was even live-streamed on the official YouTube channel of the Court of Accounts of Uniam and the main focus was to discuss the technical aspects of the proejct based on the experiences of other guests. The Brazilian Blockchain Network is under development but will be used in a few public institutions that aim to improve the services offered to citizens and will also provide traceability on the public expenditures.

This is a part of the country’s broadest efforts to integrate blockchain technology into the public administration for an efficient and transparent workflow and goes beyond regulating crypto from a financial point of view which is hte main focus of legislators in the country. Brazil launched a blockchain network and bets on it to fight corruption or improve public institutions. The incorruptible nature of blockcahin is often a double-edged sword for most officials and politicians because it makes it easier for a faster exposure to corruption, embezzlement, or other illegal activities that it aims to prevent.

The president of Uniam’s TCU Ana Arraes said that the idea to use blockchain technology came during the second half of 2019 and explained that the topic was relevant in the Government discussion because of the advantages it offers when auditing the data provided for public spending:

“The use of Blockchain technology becomes widely discussed because it allows greater protection, transparency, and integrity in the storage of information in public databases in order to allow auditability of the data placed.”

Joao Alexandre Lopes, the manager of the Information Technology Area of BNDES said that until the project is formalized, they will open the doors so that the partners can enjoy the common infrastrcuture to benefit from the technology and share benefits for the public interest. In Latin America, the use of blockchain tech in public institutions was proposed and already implemented in countries like Peru, Argentina, and Colombia where people can already audit some state activities. At the end of 2021, Colombia even announced the development of a pilot project with the help of blockchain technology and fight corruption which lasted for three months. The MINTIC hasn’t published official information on the progress of the current status of the project.