The Pension Fund Of Russia Is Being Integrated In Blockchain

The Pension Fund of Russia will use blockchain technology to integrate all of its information into a distributed register and prepare proposals for the integration of all systems into a single platform. The Fund believes that this will reduce the cost of maintaining and storing significant amounts of data.

The technology will also ensure greater transparency in labor agreements and help protect workers from the violation of their rights by negligent employers.

At present, the Pension Fund of Russia places employers’ data on insurance contributions and tax deductions on centralized servers. After the introduction of the technology of distributed databases, all information will be stored in them.

Users will be able to record all agreements in a distributed ledger and will not be able to edit the information backdating.

Prime Minister Dmitry Medvedev said in June that electronic labor books will be in effect from 2020 onwards.

The Pension Fund of Russia noted that the transition to the digital economy is intensifying, covering more and more services, including tourism, transport logistics and network trade.

The Digital Platform of the Pension Fund of Russia should reduce the operational costs of the fund and ensure the proactive digitalization of the country’s economy.