Sao Paolo, an important city in Brazil, has added blockchain into the law municipal data transparency and access.
Blockchain is a concept defined as a potentially helpful technology for the data industry, however, the city has yet to define the implementation or the structures for blockchain use from now on.
Part of the crypto technology, blockchain has an increasing number of use cases adopted by global institutions. Sao Paolo incorporated the concept in its data law. There, blockchain is considered a fixed ledger that can write down transactions and follow assets via a computer network. The law cites blockchain as useful technology, however, it doesn’t state exactly how blockchain can improve data access and transparency.
Crypto experts are under the assumption that adding the concept of blockchain to the regulation happened by accident since the law doesn’t show how to implement it. According to a Machado Meyer lawyer, blockchain is recognized by institutions as a benefit for the economy. Having said that, so far, there is no specific roadmap for how blockchain will be used, leading to confusion in the market.
The law’s legislators argued that they chose to add new innovations to the law. The bill’s author defended the way blockchain is mentioned in the law, stating that it should not provide strict blockchain use cases, as they must first be discussed with the executive branch of the city.