Russian State Pension Fund Set to Start Using Blockchain

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Russia is making huge waves in the blockchain space, as its government has announced that multiple new systems are using blockchain technology. Most recently, the Russian government announced it is working on a blockchain voting system to help put an end to calls that elections are rigged in the country. This could have implications all around the globe, as the technology could help legitimize many leaders from Central Africa and South America.
The Russian state pension fund (PFR) – Russia’s largest local government service – is planning to use smart contracts for employment contracts. This will help automate pension fund contributions and will give employees a greater level of security in their jobs.

Smart Employment Contracts

The new smart employment contracts will help the government save billions in data storage and management costs, as well as giving employees added security. In the past year alone, nearly 500,000 Russian workers filed complains about their employers for violating the current legislation when ending a work contract. These new smart employment contracts would be able to automatically see when an employer has breached the law and it will automatically issue fines. Pension contributions will be automatically deposited into the PFR and when a person comes of retirement age, the smart contract will automatically start sending pension payments to the associated account.

Digital Records by 2020

The Russian government has set a pledge to digitize all employment records by 2020. While using blockchain technology might take a little more time to implement, the benefits are definitely worth it. The new blockchain digital records system will help to save billions of rubles in data storage costs, plus it will reduce the man-hours required to manage and keep the system well-oiled.

Blockchain Fueling Russia

Russia is fast becoming the blockchain capital of the world in terms of adoption. Earlier this week S7 announced a partnership with Gazprom Neft to use a blockchain with smart contracts to handle the fueling of its aircraft. The new smart contract system will remove billions of Rubles worth of risk from the process and will enable S7 to remit payments in real-time – similarly to fueling up your car.

Bigger is Better – Apparently

Out in the icy tundra near Kirishi – a few hundred kilometers south of St Petersburg – Russia has been working on creating the largest crypto mining farm in the world. In a partnership with Cryptouniverse, the Russian government hopes to begin mining BTC with over 3000 mining rigs – a number that is set to increase in the coming months.
Russia’s new smart employment contracts will come as a welcomed gift to the Russian people, months after the government announced it would be bumping up retirement age for both men and women. The Russian government continues to push ahead and implement blockchain projects in a bid to become more efficient and technologically advanced.