Canadian Bankers Association interested in blockchain-powered digital ID systems

The Canadian Bankers Association (CBA) is interested in exploring blockchain-powered open banking payment systems, as the need for digital identification “will only grow more urgent.”

A press release in The Star states the Department of Finance has recently launched a public consultation to understand the merits behind open banking frameworks.

One benefit is that it will allow consumers and businesses to permit third-party fintech companies to access financial records and provide innovative services.

Other possible avenues include biometrics, document review over live video, and artificial intelligence.

Neil Parmenter, President and Chief Executive Officer of the Canadian Bankers Association, spoke on behalf of the CBA on a video posted to YouTube. During the video, the CEO notes: “As daily interactions become increasingly digital and we explore the possibilities of open banking, online ID verification will only grow more urgent.”

As such, the CBA are delving into the world of fintech to see whether blockchain, amongst other technologies, can replace the out-dated method of paper-based processing.

Parmenter is calling for a “federated” form of digital identification that can serve as a link between federal and provincial systems. The systems in reference will hold sensitive information such as social insurance numbers and drivers’ licenses.

This new system of digital identification outlined by the CBA could possibly allow for the electronic authentication of an individual’s identity by utilising multiple digital reference points. Parmenter adds: “Instantly verifying who someone is using multiple digital reference points is more secure than relying on a photocopy of a drivers’ license.”

Parmenter informed the Economic Club of Canada that with a decentralised digital network, “the risk of compromising the system is reduced by eliminating ‘honeypots’ of data that hackers tend to target.”

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