Foreign media: China's social security fund investment management will adopt blockchain technology

According to foreign media reports, the Chinese government is considering applying blockchain technology to social security funds, such as unemployment benefits and pensions. By the end of 2015, the funds managed by the National Social Security Fund Council reached US$284.5 billion, an increase of 24.6% over the same period last year.

The source of this news is China Daily Europe, where the author mentioned:

"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 Wang Zhongmin, vice chairman of the National Council for Social Security Fund.

In fact, on August 21, Chairman Wang said at the China Blockchain Industry Conference in Beijing:

“There is no doubt that blockchain will have extremely valuable applications in the social security system itself, as well as in the investment and management of social security funds.”

Perhaps Wang meant that the government agency was exploring blockchain technology but did not explicitly say it would adopt it. (Readers should distinguish between the two)

The government agency hopes to use blockchain technology to reduce operating costs and improve the efficiency of clearing, settlement, payment and accounting due to its ability to cut out middlemen.

This is the latest move by the Chinese government to embrace blockchain technology, and an announcement may be made at the Blockchain Summit in Shanghai.

There is every indication that an announcement will be made by the Chinese government itself or a government-related consortium/alliance, but we have yet to receive any concrete information.

China is rising

Perhaps the biggest surprise of the past decade is that the Chinese are ahead of the world in adopting new technologies. Specifically, financial technology (Fintech) has become mainstream in China. Internet giants Tencent and Ant Financial handle more than half of China's payment volume. It can be said that these two giants are dominating this battleground market.

In the eyes of Westerners, China lacks banking infrastructure, but with the advent of the Internet, Chinese entrepreneurs have skipped ancient banking technology and turned to the latest and most cutting-edge technology to fill financial needs. There, QR codes are everywhere, they can send money through instant messaging applications, and even chat with robot advisors.

America awaits new government

In the West, the UK announced the beginning of a beautiful friendship with Fintech this spring, and their Fintech regulatory environment is considered the best in the world, but it is difficult to hear any good news from US officials.

The U.S. government's exploration of blockchain technology is mainly reflected in the Department of Health and Human Services (HHS), the Department of Defense (DOD), and the Department of Homeland Security (DHS).

In addition, the US presidential election is approaching, and in just two months, the United States will usher in a new government. It will be very worthwhile to see how the new US government will treat blockchain.