Technology against corruption: Brazil will use blockchain to manage and track public spending

RIO DE JANEIRO, BRAZIL – Investtools, a fintech company from Rio de Janeiro that specializes in cryptoactive solutions, recently announced that it has received a million-dollar investment from several institutions to accelerate the development of GOV Token, a platform that will use a blockchain network to record and enable transparent tracking of public spending.

The application of blockchain technology takes the government and other institutions out of the roles of accountability to society. The information is embedded in a network with no single central control, within the reach of all users and, of course, the public.

Amid so many cases of corruption, having a tool that promotes security never before seen in the control of public spending is an innovation as necessary as it is democratic,” explains David Gibbin, CEO of Investtools.

The proposal is simple: each and every financial resource released by public entities will be represented in a decentralized network as a unique and immutable token. The network will permanently record each and every financial movement in a blockchain, including the sender and receiver of that money – as well as its use.

The GOV Token was first mentioned in August 2020, when Investtools received R$999,912.40 from the state of Rio de Janeiro through the InovAção Rio program.

Now, with the funds effectively passed on, the company intends to accelerate the development of a pilot program that should be ready for testing by the second half of this year. Also supporting the initiative are governmental organs Financier of Studies and Projects (Finep), the Carlos Chagas Filho Foundation for Research Support of the State of Rio de Janeiro (Faperj), and the Rio de Janeiro State Development Agency (AgeRio).

Source: Canaltech

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