NEC and Partners to Create Blockchain Identity System for Buenos Aires

A new partnership between a development bank, an NGO and a tech corporation is eyeing the creation of a blockchain-based identity system to improve financial inclusion in Buenos Aires.

IDB Lab, NGO Bitcoin Argentina and the Argentine subsidiary of NEC Corporation announced their signing of a Memorandum of Understanding to pursue the project on Aug. 26.Using blockchain to tackle the poverty penalty.

As 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.

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.

Blockchain technology, they contend, can provide a secure and reliable registration of data on individuals' identity and behavior, while preserving privacy and granting citizens control over its circulation.

The blockchain-powered identity system they envision will provide unbanked individuals with a digital wallet that allows them to store and transact 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 third-party projects, both public and private.

"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."