Canada may use blockchain-based technology as part of the digital ID system for its residents as the country is exploring the possibilities of open banking framework.
The so-called open banking refers to the field that would allow consumers and businesses to permit third parties such as fintech startups to access their financial data and provide innovative services.
According to The Canadian Press, Chief Executive of the Canadian Bankers Association (CBA) Neil Parmenter said it was necessary for the country to unlock the full potential of the digital revolution that is underway, particularly in the creation of digital ID procedures relating to the banking and finance sectors.
He also added that moving away from a paper-based, this digital identification system could make it possible to authenticate an individual’s identity electronically using multiple digital reference points from different systems.
“Instantly verifying who someone is using multiple digital reference points is more secure than relying on a photocopy of a driver’s license,” Parmenter told the Economic Club of Canada during a presentation. “Because this digital network is connected, yet decentralized, the risk of compromising the system is reduced by eliminating ‘honeypots’ of data that hackers tend to target.”
Canada is also reportedly exploring other areas for blockchain technology adoption at a state level, with the most recent including customs formalities at borders.