The latest association between a nongovernmental organization (NGO), development bank, and a tech enterprise are looking at the formation of a blockchain-based identity framework to improve financial consideration in Buenos Aires.
NGO Bitcoin Argentina, IDB Lab (the Innovation Laboratory of the Inter-American Development Bank Group), and the Argentine subsidiary of NEC Corporation reported that they had signed an MOU (Memorandum Of Understanding ) on 26th August to pursue the project.
Further, as NEC’s news announcement imparts, information from the Buenos Aires City Government shows that 16.2 percent of the city’s occupants live lower than the poverty line. To handle these issues, this association plans to provide digital identity to all individuals by using Blockchain technology, which empowers safe registration and reliability of data on a person’s activities by additionally saving their privacy and enabling them to control their information.
The economic difficulty that is connected with the situation is known as the penalty of poverty, which suggests that underprivileged segments of the population take over moderately higher expenses to get access to products and services, especially with regards to financial services. Moreover, the members of the association argue that inaccurate or incomplete data is the crucial piece of this issue, intensifying financial exclusion and increasing constraints for people trying to enter the market.
Moreover, the venture which has a time period of four years will initially be introduced in Barrio 31 and is required to be extended to two other economically underprivileged areas in the Metropolitan Area of Buenos Aires. Regardless, NGO Bitcoin Argentina, an NGO that is in charge of executing the venture, is additionally being supported by IDB Lab, IOV Labs (RSK) and Accenture.
According to Rodolfo Andragnes, President of NGO Bitcoin Argentina,
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 the trust, of relations between the inhabitants of a community, and also enhances the efficiency of processes.
The association accepts that blockchain technology can provide reliable and secure registration of information on the behavior and identity of people while protecting security and granting individuals’ authority over its due course. It is anticipated that the blockchain-controlled identity framework will give people who do not use banking institutions by providing with a digital wallet that enables them to store and make payments and settlements.
Besides, NGO Bitcoin Argentina, which is entrusted with initiating the venture’s execution, is accepting financial support from IDB Lab, IOV Labs, and Accenture. NEC Argentina will fill in as a technological partner and commit to the development of the digital identity solution, and its integration into private and public third party tasks.