The identity solution, dubbed “Device ID,” will see participation from nine banks, and is reportedly integrated into Brazil’s domestic clearing system, the Brazilian Payment System (SPB).
Its aim is to authenticate and verify digital signatures using mobile devices, ostensibly to guard against financial crime and unauthorized use of the financial system.
“Brazilian banks have been studying blockchain technology applications for a long time, but they weren’t all together. So we decided to create a group and unify all actions, which is very important to achieve standardization to all banks,” Joaquim Kiyoshi Kavakama, director of Febraban, Brazil’s national banking association, commented. He added:
“We are now in the forefront when it comes to blockchain.”
At the same time, authorities remain vigilant about malpractice within the space, taking down a notorious fraud scheme involving 55,000 investors last month.