The Brazilian capital of Sao Paolo is incorporating blockchain into its municipal regulation of knowledge entry and transparency. This is a way to help it better fulfill its duties.
Sao Paolo Regulation Introduces Blockchain Concept
As institutions around the world become more aware of the potential of blockchain, Sao Paolo has adopted the technology as part of its municipal regulation of knowledge entry and transparency. The regulation outlines the concept of blockchain, but does not provide details on how it might be implemented.
Marcelo Castro, lawyer for Machado Meyer, spoke to O’Globo about the potential risks of not providing specifics on the way blockchain technology should be used:
While many are beginning to recognize blockchain’s value in the financial system, there isn’t a command that will tell you how it can be used within a given timeframe. This poses a huge risk of becoming a dead regulation.
Innovation in the Future
The author of the regulation, Maria De Carli, defended the use of blockchain in a general way. According to local sources, the regulation should not provide exact use cases for the technology. Those should be discussed with the municipal government department.
De Carli spoke of the various possible uses of blockchain technology in regulation, including helping detect corruption and ensuring compliance of public servants. Blockchain technology allows for public viewing of all transactions.
At the national level, initiatives aimed at leveraging blockchain technology are also in progress. In May, the Brazilian Development Bank launched the Brazilian Blockchain Community, a blockchain project that seeks to provide a platform for other public institutions to build decentralized applications to increase transparency and access to public data.
What do you think about blockchain being included in regulation? Let us know in the comments below.
Picture credit: Shutterstock, Pixabay, Wiki Commons
