Legal surroundings and adoption of blockchain as a tool to prevent corruption in public contracts:
reflections on European initiatives and the Brazilian regulatory framework.
DOI:
https://doi.org/10.36428/revistadacgu.v14i26.528Keywords:
public procurement, Blockchain, corruption, legal framework, initiativesAbstract
Public procurement represents a relevant amount of public expenses in every country. In Brazil, they might reach around 12% of its Gross Domestic Product (GDP). According to the United Nations Convention against Corruption, public contracts are important tools to accomplish collective interests, although highly vulnerable to corrupt acts and fraud, which harm economic development. Recently, Distributed Ledger Technologies (DLTs) have emerged, endowed with features capable of introducing significant benefits to the public sector. Among them the guarantee of immutability and integrity of multiple records and the disintermediation generated by a consensus mechanism. Its usage allows for automatizing processes through the denominated “smart contracts” in public tender procedures, reducing possible breaches to illicit acts. That being said, this paper examines a few European initiatives on such technology, the Brazilian legal framework, and, in the end, proposes a reflection on the first steps towards its implementation and the interactions necessary for effective institutional coordination in the application of blockchain by the public administration in Brazil.
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