NEC and Partners to Create Blockchain Identity System for Buenos Aires

A new partnership is eyeing the creation of a blockchain-based identity system to improve financial inclusion in Buenos Aires.
A new partnership between a development bank, a nongovernmental organization (NGO) and a corporation is eyeing the creation of a blockchain-based identity system to improve financial inclusion in Buenos Aires. IDB Lab (the Innovation Laboratory of the Inter- Development Bank Group), NGO Argentina and the subsidiary of NEC Corporation announced they had signed a memorandum of understanding to pursue the project on Aug. 26.Using blockchain to tackle the poverty penaltyAs NEC’s news release outlines, data from the Buenos Aires City Government reveals that 16.2% of the city’s inhabitants live below the poverty line. This economic hardship is in turn associated with a phenomenon known as the poverty penalty, which implies that disadvantaged sectors of the population shoulder relatively higher costs to access goods and services — particularly when it comes to financial services.The three partners argue that incomplete and/or inaccurate data is a key part of this problem — exacerbating financial exclusion and raising barriers for individuals attempting to enter the market.  They believe blockchain can provide a secure and reliable registration of data on the identity and behavior of individuals while preserving privacy and granting citizens control over its circulation. It is envisioned that the blockchain-powered identity system will provide unbanked individuals with a digital wallet that allows them to store and make payments and remittances while building a transaction history,The partners have agreed to cooperate on the project for four years — with an initial focus on the Buenos Aires neighbourhood, Barrio 31, before further expansion. NGO Bitcoin Argentina — tasked with spearheading the project’s execution — is reportedly receiving financial backing from IDB Lab, Accenture and IOV Labs. NEC Argentina will serve as a technological partner and contribute to the development of the digital identity solution, as well as its integration into public and private third-party projects.“A radical change in the management of trust”In a statement, NGO Bitcoin Argentina president Rodolfo Andragnes said:”One of the main objectives of this project is to demonstrate with concrete cases that the blockchain represents a radical change in the management of trust, of relations between the inhabitants of a community, and also enhances the efficiency of processes.”Earlier this month, Cointelegraph reported that Bitcoin (BTC) was trading at a 4% premium in Argentina as a sharp sent citizens running for a safe haven.

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