Detran begins to study blockchain for vehicle financing

The president of the Detran of Tocantins, Willian Gonzaga dos Santos, has set up a technical committee to analyze the profile of companies that want to provide services to the state transport agency.

This is because the Detran/TO is interested in implementing a blockchain network to track the registration of financing contracts with real guarantees in vehicles.

The publication does not specify when companies will need to be accredited to provide the service, but it indicates that a first Detran in Brazil began to pay more attention to technology.

What will the Tocantins Detran do in accrediting blockchain companies?

Contran Resolution No. 807/2020 provides for the procedures adopted for the registration of vehicle warranty financing agreements. Such documents must be required to be communicated to the state and federal district transit departments to be valid.

With such financing, there are notes on the Registration Certificate (CRV) and the Annual Registration Certificate (CAO). Such documents remain in the possession of the drivers themselves.

But that could all change with the advent of blockchain, which could make records more secure in the future. And Tocantins is the first state to make public its intention to register blockchain financing contracts.

“To establish a technical and document analysis committee of legal entities interested in accreditation with the Detran/TO for the implementation of a network of distributed ledger technology in Blockchain, for the registration of financing contracts with real warranty of vehicles.”

The Commission that will host the blockchain companies consists of a Detran Coordinator, a full member and an alternate member, in addition to two technical support professionals.

According to an official publication that Livecoins had access to, the measure came into effect last Tuesday (4).

Transparency technology

Blockchain is known as the technology of transparency and can make any contract between parties more secure. In the future, even the use of blockchain smart contracts could help make truly secured vehicle finance more automatic.

By documenting transactions, storing data securely, information recorded on a blockchain becomes immutable.

It is worth remembering that Tocantins’ Detran has not disclosed any public details about which blockchains can participate in the process, just as it is not clear whether only state-owned companies can participate in the new process.

In any case, it is remarkable that a public transport entity is looking for initiatives around technology, recognized in Brazil since 2020.

Source: Live Coins

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