The UN experiments with blockchain in its pension fund system
The UN has launched a white paper praising the consequences of blockchain know-how in its pension fund system.
Blockchain know-how has steadily helped corporations and organizations to enhance transparency, reduce prices, and cut back fraud in areas like finance, provide chains, and healthcare. Now, the United Nations is taking steps to combine the know-how extra deeply into its operations after testing it inside its pension system.
The UN backs blockchain know-how
The United Nations acknowledged that blockchain know-how is a key instrument for its digital transformation and inclusive governance technique after a profitable trial in its pension fund system.
A brand new white paper launched by the worldwide physique concluded that blockchain supplies “the final word know-how for digital id verification,” with the potential for the UN to now scale the know-how throughout its companies and market it as a worldwide digital public good.
The venture is centered on the United Nations Joint Employees Pension Fund (UNJSPF), which manages retirement advantages for workers throughout the UN system. For many years, the pension fund has operated utilizing a guide, paper-based course of that required beneficiaries to show their id and make sure they’re nonetheless alive.
With greater than 70,000 beneficiaries in 190 international locations, the system was gradual, pricey, and susceptible to fraud. The reliance on bodily paperwork usually led to errors, delays, and even suspensions. It additionally led to round 1,400 pension funds being paused annually due to verification issues.
To handle these challenges, the UN determined to make the most of blockchain in partnership with the Hyperledger Basis. The initiative was launched first in 2020, after which there was a bigger rollout in 2021 when the pension fund moved to a digital certification system constructed on blockchain.
The UN switches from paper to blockchain
The white paper described the previous pension system as “a 70-year-old course of susceptible to error and abuse.”
Yearly, the fund needed to handle paper varieties from tens of 1000’s of retirees worldwide. Employees spent hours receiving, opening, scanning, and archiving paperwork, and all these steps launched alternatives for errors or delays.
In keeping with the report, this transformation to blockchain know-how improved effectivity and transparency. Beneficiaries may affirm their standing digitally, whereas the fund gained better confidence with fewer weak factors within the system to be exploited.
“The shift away from bodily documentation has considerably diminished processing occasions,” the UN report’s authors famous. They referred to how blockchain allowed beneficiaries to securely confirm their id and standing with out mailing or submitting bodily paperwork, reducing down on processing occasions and making the system extra resilient, whereas additionally eliminating repetitive checks and the chance of duplicate information entry.
The United Nation is now exploring methods to adapt the Digital Certificates of Entitlement mannequin, which is the blockchain-based id verification system, throughout its companies and probably share it with different worldwide teams.
Sameer Chauhan, the director of the United Nations Worldwide Computing Centre, wrote within the paper’s conclusion that the venture supplied not solely a technical resolution but additionally “an operational mannequin for the way organizations throughout the UN household can collaborate to design safe, scalable, and inclusive digital public infrastructure.”
