Russia has been one of those countries which has found myriad applications for blockchain technology in different sectors. Recently, the Association of Non-State Pension Funds (ANSPF) has drafted a proposal to integrate blockchain into their personal pension savings system.
To that end, they have also sent a letter to the Pension Fund of the Russian Federation outlining this proposal. This letter states that there are several loopholes in the current system. One of them is that new customers are not notified when there is a loss of monetary resources which are stored in other funds.
The aim here is to integrate blockchain technology in the system so that these isssues can be dealt with. A system that runs on blockchain will effectively eliminate such loopholes and ensure that the data is stored in the distributed ledger system and is accessible by all the users without a possibility of data tampering.
The distributed ledger technology ensures that there is no way that a third party can manipulate the data that is already up on the system, which thereby ensures greater transparency and makes it a popular alternative to existing systems of storage.
The people associated with the Pension Fund of Russia have indicated that they are aware of the the ANSPF initiative but they did not issue any comment or statement regarding it.
One of the main problems of the existing Russian pension system is that there are losses incurred on deposits by residents if they decide to change the fund prematurely. There are staggering statistics available that clearly indicate that more than 2.8 million people have suffered losses of approximately 34 billion rubles ($ 518 million) in 2017 because of a premature transfer from the Pension Fund to non-state funds.
This transition to private funds cost people their financial resources. With blockchain, according to ANSPF head Sergey Belyakov, the system can be up to date with the latest information and will not be prone to attacks or hacks. Any change that is made will ultimately lead to an automatic update of information on the chain that will be open for all to see.
This is a welcome initiative by the Russians who have in past done wonderful things with this revolutionary technology.