According to Wang Zhongmin, China’s vice-chairman of the National Council for Social Security Fund (NCSSF), the country will use blockchain technology to issue Social Security payments.
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Several Large Collaboratives to Help Implement Blockchain to China’s Social Security Fund
News publication China Daily has reported that China will use a form of distributed ledger technology to facilitate faster payments and lower transactional costs. The Daily, when reporting the news, cited the blockchain’s ability “to carry out direct transactions without using an intermediary,” which provides a tamper-proof record of information.
In 2015, the NCSSF managed 1.9 trillion yuan, and said the number had been increasing 24 percent every year.
Axel Lehmann, chief operating officer for UBS Group, says there will be “several significant large collaborative efforts” as part of this announcement.
Lehmann states to China Daily:
To realize the full potential of blockchains, we will above all need to collaborate on a common platform. At UBS, we think it is essential that the industry avoid a standards war of the type that has bedeviled the adoption of new technologies in the past.