South Korea's National Pension Service Considers Blockchain for Managing $890 Billion Fund Transactions
The NPS is exploring blockchain technology to enhance transparency and security in its fund transactions by inviting experts for preliminary insights before launching a research study.
Key Points:
- South Korea’s National Pension Service (NPS) is planning to investigate blockchain technology to improve transparency and security in its fund transactions.
- The NPS aims to prevent tampering of records and bolster management of retirement security.
- A preliminary disclosure process will take place where blockchain experts and firms will be invited to provide insights, paving the way for a research study assessing the integration of blockchain into its accounting framework.
South Korea’s National Pension Service (NPS), which manages 1,224 trillion won (approximately $836 billion) in assets, is exploring the potential use of blockchain in its fund transaction systems. The agency is considering transitioning to blockchain solutions to enhance transparency and the security of managing its deposits, withdrawals, and investments, as reported by Seoul Economic Daily.
The NPS’s Planned Steps:
- The organization intends to start a preliminary disclosure process, welcoming participation from blockchain specialists before officially launching the initiative.
- This feedback phase, which is customary for significant public projects in South Korea, will support a research study focused on assessing the feasibility of blockchain technology within the pension fund’s accounting system. The NPS is particularly interested in how a shared ledger provided by blockchain can prevent alterations to fund records, a vital function for ensuring the retirement security of millions.
Previously, the NPS has utilized blockchain technology for tracking overseas pension recipients. Although it is not planning to invest directly in Bitcoin (BTC) or other cryptocurrencies, there has been some indirect exposure through investments in companies like MicroStrategy and Coinbase.
This initiative follows shortly after South Korean 7-Eleven stores began accepting the Bank of Korea’s central bank digital currency as part of a broader testing phase.
Disclaimer: Information presented in this article was translated using artificial intelligence.
