Blockchain Technology in Healthcare: A Possible Disruption Under the Scope of Privacy

There is today a fascination for blockchain technology and how it may improve healthcare systems but its concrete applications are still limited as many questions remain to be solved. Indeed, by definition, all users on a block can see the data shared which will necessarily hurt user’s – patients – privacy. As pointed out by OECD, ‘storing personal health data ‘on chain’ and thus, by definition, visible to other network participants, is a data privacy infringement. Rights under the EU General Data Protection Regulation, particularly the right to erasure, are incompatible with the immutability of blocks in a chain.’[1] Also, public authorities are in a ‘wait and see’ position: few regulations cover specifically the use of blockchain technology. Many states are still trying to understand blockchain technology and its benefits. As a consequence, actors involved in blockchain technology are facing legal and regulatory uncertainty. It is a necessity to adopt specific laws related to the implementation of blockchain technology in a broad manner and in healthcare especially. However, the European Union General Data Protection Regulation (GDPR) 2016 applies here as it deals with data protection and imposes a series of stringent obligations on Internet service providers (ISPs). It is interesting to note that OECD made recommendations regarding the use of blockchain technology in healthcare in order to meet key international standards. ‘Potential blockchain applications should be assessed within the framework provided by the Recommendation of the OECD Council on Health Data Governance and focus on four key aspects: fitness of the technology for the use to which it will be applied; alignment with laws and regulations; incremental adoption to allow time for evaluation; and a training and communications plan.’[2]

[1] See OECD, Blockchain Policy Series, Opportunities and Challenges of Blockchain Technologies in Health Care, p. 2, December 2020. Available online: https://www.oecd.org/finance/Opportunities-and-Challenges-of-Blockchain-Technologies-in-Health-Care.pdf.

[2] Id.