South Korea’s National Pension Services (NPS) is pondering its prospects for a switch to blockchain to streamline its accounting process.
Local news outlets report that NPS will open the doors for blockchain service providers and pitch web3-based solutions to the pension committee. Currently, NPS manages 1.2 trillion won (US$836 billion), and the majority of its blockchain-based solutions revolve around its fund transaction system.
The NPS seeks solutions to streamline the deposit and withdrawal process while also increasing the security and transparency of the funds.
Under migration, all NPS transactions are stored in a distributed ledger and become publicly accessible. However, consolidation of blockchain does not translate into pension fund NPS investments in digital assets such as BTC and Ethereum (ETH).
“They seem to be looking into introducing blockchain technology as a way to further enhance the security and transparency of their fund management systems,” said pension experts.
“In particular, they must have decided that they need to build a safer and more reliable system, as they manage the country’s valuable pension assets,” the expert added.
While considering pitches from Web3 service providers, NPS is reportedly preparing a feasibility report on the transition to blockchain in its pension fund accounting process. Following its feasibility report, NPS is expected to proceed with public consultations before pivoting into a distributed ledger.
This is not the first time NPS has investigated blockchain capabilities, with institutions leaning towards emerging technologies for fund management for overseas pensioners. The first experiment sparked a greater desire to integrate blockchain into pension fund management.
Korean entities are integrated with blockchain
Korean institutions employ blockchain, and players in the financial sector are at the heart of this. Major domestic banks joined the central bank and dabbled in central banks’ digital currency (CBDC) to investigate potential blockchain-based capabilities for internal operations.
Outside of finance, the country is investigating the possibility of digital IDs that woven blockchain capabilities. Other use cases for blockchain in Korea extend to streamlining the job search process, the music industry, security and health.
Vietnam launches digital innovation portal under the National Digital Transformation Initiative
Elsewhere, Vietnam is heading towards digital innovation. Its latest initiatives establish a digital innovation portal for emerging technologies.
The Digital Innovation Portal is the brainchild of Vietnam’s Ministry of Science and Technology under the national digital transformation agenda. This portal acts as an official channel for individuals and businesses to submit emerging technology solutions.
With innovative solutions, entities can submit proposals through the portal without the hassle of long documents or traditional bureaucracy. Additionally, businesses and individuals can evaluate each proposal and update product information by the ministries that issue feedback online.
During the launch, Deputy Minister Fam Duc revealed that the portal is a step in the right direction of a Southeast Asian country eager to rival the pace of innovation that its neighbors.
“Above just a digital platform, this information portal embodies a new spirit of shaping the movement of entrepreneurship, innovation and improvement. Increases work efficiency and labor productivity,” Long said.
Just 24 hours after its launch, the portal recorded 100 proposals from entities across Vietnam. Of these, 60 have been rated for legality reviews. The proposal crosses several sectors, including finance, commerce, healthcare, education, postal services and logistics.
A viable solution with clear use cases receives government funding and focuses on a fair assessment process for all proposals. However, industry players urge ministries to set clear criteria for greater transparency.
“The emergence of this information portal is not only an improvement in policy communication,” a government representative said. “It is a strategic connectivity platform between government and the technology business community.”
Another milestone in the march to digitalization
Vietnam is aiming to control the region for digitalization and embraces emerging technologies to achieve its objectives. Southeast Asian countries have already invaded the blockchain and are relying on technology to certify the $3 trillion halal food sector.
Ho Chi Minh, the country’s largest city, raises the stakes between blockchain and artificial intelligence (AI) investments. Nationally, AI use cases have flooded Vietnam, and the government has consolidated its position in semiconductor manufacturing.
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