Pension Savings System In Russia Can Be Transferred To Blockchain
The Association of Non-State Pension Funds (ANSPF) sent a letter to the Pension Fund of the Russian Federation with a proposal to introduce blockchain into the system of personal pension savings, Izvestia reports.
The document states that savings funds often do not notify new customers of the potential loss of monetary resources stored at other funds. Blockchain will help avoid this issue since all data will be recorded in the distributed ledger system and made available to all participants without any changes.
The representatives of the Pension Fund of Russia familiarized themselves with the ANSPF initiative but did not comment on it.
Blockchain has many advantages: it is virtually not prone to hacking attacks, many servers are integrated in the system, where all transactions information is stored, any change leads to automatic information update, and all participants can see it, the head of the ANSPF Sergey Belyakov stated.
The main problem of the Russian pension system is the loss of deposit income by residents if they decide to change the fund prematurely. According to the Central Bank of Russia, more than 2.8 million people lost about 34 billion rubles ($518 million) in 2017 because of an untimely changeover from the Pension Fund to non-state funds. About two million people lost their financial resources on transition to private funds.
As previously reported, Russian corporation "Rosatom" will implement blockchain in its future projects.