According to Cointelegraph, over 214 million Brazilians will soon be using blockchain technology for digital identity, as announced by the government. Rio de Janeiro, Goiás, and Paraná will be the first states to issue identification documents on-chain through a private blockchain developed by Serpro, Brazil's national data processing service. The entire country is expected to issue identity documents through blockchain technology by November 6.

Alexandre Amorim, president of Serpro, stated that the immutability and decentralization of blockchain make it an ideal technology for the country's digital identification project. The national ID project aims to target organized crime, allow government sectors to work together, offer a simpler way to access services, and streamline administrative records. Brazil has been working to unify identity issuance across its almost 30 states, and the newly adopted technology will enable a more secure data exchange between the Federal Revenue and government departments.

In addition to the digital identity project, Brazil is also working on a central bank digital currency (CBDC) called Drex. The central bank plans to expand business access to capital through a tokenization system associated with the Drex, which will allow a central authority to freeze funds or reduce balances, according to a local developer.