The Brazilian city of Sao Paolo has introduced the concept of blockchain in its municipal data access and transparency law. The concept of blockchain is defined as a technology that can be of use in this field, but the city has not defined the structures or the implementation for its use in the future.
Sao Paolo Law Introduces Concept of Blockchain
Little by little, more use cases of blockchain, part of the technology behind cryptocurrency, are being embraced by institutions all over the world. The city of Sao Paolo has included the concept of blockchain in its recently passed municipal data and transparency law as a tech that can be used to help the state complete its tasks.
In the legislation, blockchain is defined as an immutable ledger that can record transactions and track assets using a computer network. While the tech is cited as a useful tool, the law fails to define in which ways it can be harnessed to make data access and transparency-related tasks more efficient.
This has led some experts to believe that the inclusion of this definition in the law is just accidental, as the document fails to indicate any implementation methods. On this, Marcelo Castro, a lawyer for Machado Meyer, told O’Globo:
Institutions are recognizing blockchain as beneficial in the economy, however, there is no specific command saying how the technology will be used within a schedule, and this brings an enormous risk of going astray in a dead letter of law.
However, legislators behind the document defended the approach they took to include new technologies in the law. Maria De Carli, the author of the regulation, defended the generic way in which the law mentions blockchain. De Carli told local sources that the law should not give strict use cases for the tech, as these must be discussed with the municipal executive branch.
De Carli mentioned several uses for blockchain tech in the scope of the law, such as aiding in the detection of cases of corruption and ensuring compliance for public servers, as the technology allows for a public view of each transaction.
At a national level, other initiatives of this kind are also in motion. In May, the Brazilian Development Bank launched the Brazilian Blockchain network, a blockchain project that aims to serve as a base for other public institutions to build their decentralized apps to increase the transparency of public function.
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