NEC, IDB Lab and NGO Bitcoin Argentina to create a blockchain-based identity system for Buenos Aires

According to recent reports, IDB Lab, the innovation laboratory of the Inter-American Development Bank Group), Bitcoin Argentina, an NGO, and the Argentine subsidiary of NEC Corporation have signed a memorandum to create a blockchain-based identity system that is aimed to enhance the financial service and access to quality goods and services for the residents of Buenos Aires.

As per the announcement, 16% of the residents of Buenos Aires live below the poverty line, and this is directly associated with a phenomenon called “poverty penalty”. This means that the people living in these conditions have to bear higher costs to access various amenities and services. The NEC believes that the primary reason for poverty penalty is the lack of proper information.

Banking the unbanked

The three organizations aim to tackle this situation by developing a system that provides a secure and reliable registration of data on the identity and behaviour of individuals while preserving privacy and also granting citizens control over their own data, using blockchain technology. This system will provide every citizen with a digital wallet which will allow them to store and make payments easily while also keeping track of all the transactions, thus banking the unbanked.

The project will be under development for four years and the primary focus will be the Barrio 31 area of Buenos Aires and will be expanded to further regions at a later stage. Bitcoin Argentina is leading the project execution and is reportedly receiving financial support from Accenture, IOV Labs and IDB Lab. The NEC Argentina will be the technological partner in charge of the development and integration of the project into public and third-party projects.

Rodolfo Andragnes, president of NGO Bitcoin Argentina commented:

“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.”

Jorge Vargas, Head of RCoC NEC Latin America, was also pleased with this partnership:

“NEC, as a social value provider, is pleased to collaborate and support initiatives for social inclusion around the world through the application and integration of innovative technologies, such as Blockchain and Biometrics, that will enable a safe, secure, efficient and equal society,”