Russia Continue To Explore Blockchain, This Time It’s Pensions
Russia, they are on the fence about cryptocurrencies, but when it comes to blockchain technology, authorities and services over there see blockchain as a favourable innovation. Latest reports from Russia suggest that the Russian State Pension Fund (PFR), a social service within Russia, are set to start working with blockchain technologies in order to make the most of smart contracts, to issue employment contracts between employers and new employees.
According to Cointelegraph, this new project plans to:
âIntroduce smart contracts to be used as employment contracts between employers and employees. Such agreements could be made in any of the numerous state units providing public services â the net that reportedly covers up to 97% Russiaâs population.â
This will make employment far more transparent and could be used (for instance) during employment tribunals and other legal proceedings that are taken out and require many authorities to access the contracts. This is important, considering:
âState Labour Inspectorate statistics cited by Izvestiya show that more than 465,000 Russian citizens claimed their labor rights were violated in 2017. Â In that regard, officials imposed fines for more than 20 billion rubles (approximately $293 million).â
This could make sure court proceedings are far more efficient and could in turn save the authorities and even the employees and awful lot of money when it comes to employment tribunals and the likes.
According to Cointelegraph:
âThe PFRâs decision to turn to blockchain comes against the backdrop of a radical pension reform the Russian government introduced in mid-2018. Officials initially offered to raise the minimum retirement age for women up to 63 years (from its current 55 years) by 2034 and for men up to 65 years (from its current 60 years) by 2028.â
This is a part of national reform that could see blockchain technology used in other ways just within the labour industry alone.