Blockchain technology use case keeps gaining traction among public and private establishments. The city of Sao Paolo in Brazil is the latest municipal area to announce its adoption. However, the city has yet to reveal the structure or how it intends to use the technology.
Introducing The Sao Paolo Blockchain Law
Since the emergence of blockchain technology in the mainstream, various industries have widely adopted it to complement their operations. Apart from being the dominant technology behind the development of cryptocurrency, institutions in the traditional finance sectors are increasingly integrating blockchain technology into their operations.
For efficiency in public service, the city of Sao Paolo has passed the municipal data and transparency law which will further adopt blockchain technology to enhance the city’s overall tasks. In the new legislation, blockchain technology is described as an immutable ledger capable of recording transactions and tracking assets using a computerized network.
However, despite being described as a helpful tool, the legislation still needs to explain how it can make data access and transparency activities seamless for the city.
Hence, some experts believe that the definition of blockchain in the law is purely accidental, with the document showing no implementation method.
Commenting on the recent development, Marcelo Castro, a popular legal counsel, opined that while authorities continue to recognize blockchain technology and its importance, it has yet to develop a specific strategy for using the tool.
Also read:Castro added that there is no such schedule for adopting the technology to fit specific tasks, which risks becoming a wasted investment.
Issues Ahead
However, the Sao Paolo legislators have defended the document and their approach by including emerging technologies like blockchain in the new legislation. According to Maria De Carli, the document’s lead author, the new law’s generic definition of blockchain is satisfactory.
De Carli explained that the law is not looking to place strict use cases for the technology because this has to be discussed with the municipal decision-makers. Furthermore, the author noted several use cases for blockchain within the scope of the new guidelines.
Some of them include using the tool to detect corruption, ensuring compliance with the states’ servers, and ensuring transparency by displaying every transaction. At the national level in Brazil, the country has similar initiatives to that of Sao Paolo, which are currently ongoing.
In May 2022, the Brazilian Development Bank unveiled the Brazilian Blockchain Network, a project to serve as the foundation for other public agencies to develop their decentralized applications and ensure transparency in public action.
Moreover, Brazil has joined many other nations with plans to ensure a comprehensive adoption of blockchain technology to increase operational efficiency in public establishments. As with other jurisdictions, Brazil has yet to specify how it uses blockchain technology to boost its government’s overall functions.
In the meantime, the Sao Paolo municipal government is yet to reveal the next direction of its blockchain initiative.
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