Here, it is important to clarify that according to the concept of self-sovereign digital identity, owners of the digital identity are responsible for the control and management of their data.
It is users who control their data, which is in line with the objective of data protection laws such as General Data Protection Regulation, or GDPR, and the General Law for the Protection of Personal Data in Brazil, commonly known as LGPD, which comes into force in August 2020. Decentralized digital identity consists of several electronic credentials issued by different participating identifiers that are part of a blockchain network.
FinID is a project developed through CPqD one of the largest telecommunications research and development centers in Latin America which uses the concept of decentralized digital identity.
In Brazil, the intention is to use the FinID in other projects coordinated by the national central bank, such as open banking, which involves the exchange of user information between banks and the new instant payment platform.
With decentralized digital identity, this credential, formed by personal data and various identifiers, is in the users possession, who can present it to other financial institutions with which they do not relate, but which have an offer of interest.
According to a FinID report published at LIFT, a virtual laboratory that promotes prototypes of financial and technological innovation with support from the Central Bank of Brazil, the implementation of the open financial system and the new instant payment platform, known as PIX, will be an evolution of the Brazilian financial sector that will happen in the short or medium term.
Lets follow how its implementation will develop and hope that this solution will really be able to guarantee portability and the protection of consumers financial data.
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