Brazil, the world’s fifth-largest country by population, is testing a program that will allow its citizens to manage, own, and profit from their digital footprint. This initiative, the first of its kind globally, was introduced by the government in partnership with California-based data valuation/monetization firm DrumWave. The project aims to transform data into economic assets through ‘data savings accounts,’ which will enable users to monetize their personal data through authorized transactions. This represents a shift toward addressing historical imbalances in the digital economy by granting individuals ownership rights over their data, which could potentially foster a new economic model where personal data becomes a tradable asset.
Brittany Kaiser, co-founder of the Own Your Data Foundation and board adviser for DrumWave, emphasized that currently, citizens derive no value from the data they share. She stated that Brazil’s initiative is a correction in the historical imbalance of the digital economy. Under this program, once a user accepts a company’s offer for their data, the payment is deposited into the user’s ‘data wallet’ and can be immediately transferred to a bank account. The project’s success is attributed to its collaboration between the private sector and the government, making it more likely to gain traction.
Brazil’s legislative framework has also evolved to support this initiative. In 2023, Brazil’s Congress drafted a bill classifying data as personal property, a significant step toward ensuring that individuals have full rights over their personal data, especially data generated through online platforms. The bill seeks to ensure companies offer benefits and financial rewards to users for the collecting, processing, or sharing of their data. The legislation has garnered bipartisan support and is currently being evaluated in Congress, signaling a shift in Brazil’s approach to data privacy and economic participation.
Antonielle Freitas, data protection officer at Viseu Advogados, highlighted that the new legislation could enable more precise data collection while providing users with greater clarity on how their data will be used. As data collection becomes centralized through regulated data brokers, the government can benefit by paying the public to gather anonymized, large-scale data. These databases are the foundation for more personalized public services, particularly in sectors such as healthcare, urban transportation, public security, and education. However, Pedro Bastos, a researcher at Data Privacy Brazil, cautioned that treating data as an economic asset could undermine the logic behind the protection of personal data. He warned that the data ecosystem could shift from being defined by trust and integrity to being defined by who is the richest, raising concerns about equity and privacy implications.
The program’s pilot phase involves a small group of Brazilians who will use data wallets for payroll loans, marking a significant step toward a more equitable digital economy. If approved, the legislation could enable companies to collect data more efficiently while ensuring users have greater clarity on how their data will be used. While the initiative has potential to redefine the digital economy, stakeholders remain divided on its long-term implications, with some praising its innovative approach and others expressing concerns about data privacy and economic disparity.