China’s social security system to use blockchain tech

Innovation | September 5, 2016 By:

The Chinese government is considering implementing blockchain technology for its social security system because it can facilitate trade and lower transactions costs, according to Wang Zhongmin, vice-chairman of the National Council for Social Security Fund.

“There’s no doubt that Blockchain technology will be used in the social security system because of its valuable applications in the investment and management of social security funds,” said Zhongmin.

The National Council for Social Security manages almost $300 billion with a budget increasing yearly by 24.6 percent. Due to blockchain’s ability to cut out middle men, they are hoping to decrease costs and increase efficiency with clearing, settlement, payments and record keeping made easier by blockchain technology.

At the moment, China’s main initiative in the blockchain space is the China Ledger Alliance, a noncommercial organization focused on research and development of blockchain applications. Led by research and development company Wanxiang Blockchain Lab and similar in structure to international collaborations, it can be considered China’s answer to the rapidly evolving blockchain ecosystem.