Benefits of distributing social benefits on-chain
According to the Cointelegraph report, several countries are considering implementing social programs based on blockchain technology. As per a compliance expert, this could provide a number of benefits for both governments and social benefit recipients.
Increased transparency and accountability. Distributing social benefits on a blockchain would make the process more transparent and reduce the risks of fraud. All information on payments and transactions would be stored in a public ledger, which would increase the accountability of authorities to citizens.
Faster payments and reduced costs. Using smart contracts and digital wallets instead of traditional banking infrastructure could significantly speed up the process of receiving benefits and reduce associated costs.
Expanded coverage of social programs. The use of blockchain can simplify the administration of social benefits, including for remote or hard-to-reach areas. This would allow to reach a greater number of those in need.
The expert notes that large countries such as Hong Kong, Thailand, and the Marshall Islands are already exploring the possibility of implementing such blockchain-based solutions. This could be a significant step forward in the development of social support for the population.