China is considering implementing blockchain technology for its social security system. China Daily reported that vice-chairman of the National Council for Social Security Fund Wang Zhongmin has recently stated:
"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," he said, adding that the technology can enable people to trade freely and lower transactions costs.
National Council for Social Security Fund (SSF), a government agency at the ministerial level directly under the State Council of the People’s Republic of China, is responsible for the management and operation of the National Social Security Fund (NSSF). At the end of 2015, the SSF had 1.9 trillion yuan ($284.5 billion) in funds under management, increasing 24.6 percent year-on-year.
China has been making efforts to embrace the blockchain technology which has taken global financial institutions by storm. Earlier in April, Bai Shuo, former chief engineer of the Shanghai Stock Exchange, announced ChinaLedger – a non-profit institution that aims to promote the use of distributed ledger technology in China.
In addition, over 30 Chinese financial firms formed a new Financial Blockchain Shenzhen Consortium dedicated to blockchain. It aims to integrate and coordinate research resources in financial blockchain technology to create synergy and coordination mechanisms for financial blockchain technology research and development; improve member companies’ research ability in financial blockchain technology, and to explore, develop, and realize applicable financial blockchain for financial institutions and application scenarios based on blockchain.
