A Chinese government agency in charge of social services has plans to adopt blockchain technology to improve the charity tracking system. This is stated to be a move which aim is to bring greater visibility and transparency into public donations.
The action plan released by the Ministry of Civil Affairs is set for the duration of 2018-2022. The plan highlighted areas in which the country will use internet technology to improve the transparency of social service activities.
In the plan, a part of it indicates that the government agency plans to use blockchain technology to upgrade the charity tracking system by the end of 2018 and the completion of the project is planned to be 2020.
Besides traditional charity organizations, tech giants such as Alibaba and Tencent have also launched their own donation services via mobile applications. In fact, Ant Financial, the payments affiliate of Alibaba, is already using blockchain to bring visibility into donor histories, charity disclosures and other data, as previously reported by CoinDesk.
In recent years, the number of online scandals and controversy regarding China’s charity activities has increased which has made the public wary and distrustful of the system. Therefore this move by the government is to improve the system and to regain the trust of the public
In the plan, the ministry notified provincial and municipal agencies that the blockchain network will integrate existing government charity databases at all levels with online donation services operated by the private sector. By doing so, data on charity donations made through the different services will be more transparent, accessible and made visible to the public faster using a distributed network.