The Argentine subsidiary of NEC, NGO Argentina, and IDB Lab have joined hands to launch a blockchain identity system. NEC announced this news on August 26, noting that this project aims to increase financial inclusion in Buenos Aires.
The press release noted that data from the Buenos Aires City government unveiled that 16.2 percent of the city’s residents live below the poverty line. Per the news release, this economic difficulty is associated with the poverty penalty phenomenon. This theory suggests that disadvantaged sectors of the population bear higher costs to access goods and services. In particular, this case is worse when it comes to accessing financial services.
According to the three partners, incomplete or inaccurate data forms a crucial part of this problem. They believe it makes financial exclusion worse. On top of this, it acts as a barrier for new market entrants. To help rectify this problem, the partners seek to integrate the into the Buenos Aires’ identity system. In so doing, they believe the system would have what it takes to ensure secure and reliable data recording. The would help maintain privacy. On top of this, it would offer the citizens control over the circulation of this data.
Creating an Identity Wallet
The partners aim to tackle financial exclusivity by providing unbanked persons with a digital . This would let such individuals store funds and make payments. Also, they will be able to view their transaction histories. The three firms would work on this project for four years. While Buenos Aires is the primary target, they hope to expand this service to other areas.
NGO Argentina would lead the project’s execution. The firm is reportedly receiving financial support from IDB Lab, Accenture, and IOV Labs.
NEC Argentina would work as a tech partner in this project. Apart from this, the firm would help in the creation of the digital identity solution. Also, it would work to integrate the solution into private and public third-party projects.
Commenting on this partnership, NGO Bitcoin Argentina’s president, Rodolfo Andragnes said,
One of the main objectives of this project is to demonstrate with concrete cases that therepresents a radical change in the management of trust, of relations between the inhabitants of a community, and also enhances the efficiency of processes.
This news comes after a report unveiled that BTC was trading at a 4 percent premium in Argentina. The coin’s high demand came after the peso lost 30 percent. This plunge came after the defeat of the Mauricio Macri in the primary presidential elections.
Do you think the adoption of thein Buenos Aires will help improve financial inclusion? Let us know in the comments below.