Five Canadian banks are set to use a blockchain-based user identification system named Verified.Me. The system is created by a tech firm known as Securekey Technologies. The five banks that are poised to start using Verified.Me are the Royal Bank of Canada, Toronto-dominion Bank, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Desjardins Group.
According to a report, the customers of the Bank of Montreal and the National Bank of Montreal are also preparing to use this system. Sun Life Financial will be the first North American insurer to use Verified.Me.
According to Greg Wolfond, the CEO of Securekey, the banks’ clients can use Verified.Me to prove their identities. In so doing, they will be in a position to access and open bank accounts. They would also have access to government and health services by the end of this year.
Everything from being able to see your health records in a secure way, being able to open a new bank account, being able to get a new phone — all this stuff that’s so time-consuming and painful is going to get easier for consumers.
They’re going to be able to share their data in a secure and trusted way, which they never really could before.
The Introduction of Open Banking
This news comes as the Canadian Bankers Association (CBA) has been advocating for the adoption of a digital ID system. Canada is in the process of changing its payments system. The country’s federal government is also testing open banking, which would let customers share financial data with other firms. CBA’s CEO, Neil Parmenter, has also urged Canadians to drop old paper-based processes and move to a model that uses digital IDs. Digital IDs would introduce a link between federal and provincial systems.
A publication last month revealed that Thomson Reuters, a media firm got a patent for a blockchain-based identity management system. The firm filed the application four years ago. It describes a system that can receive IDs from an identity provider system. The system then stores the data on the blockchain in an identity token.
Reportedly, Paypal also invested in a blockchain firm named Cambridge Blockchain. The startup uses the blockchain to give users more control over their digital identities. The investment was part of Cambridge Blockchain’s series A funding round.
Do you think Canadian banks adopting Verified.Me will help push for the mass adoption of the blockchain technology? Let us know in the comments below.