Chinese blockchain startup THEKEY announced a partnership with the Chinese government to develop blockchain-based applications in the field of social insurance. CEO Catherine Lee (Catherine Li) announced that the company is launching a research Fund of $20 million to support the development and application of the blockchain in the area of social insurance.
Despite the ban
cryptocurrency trading in China, the government is at the forefront of efforts to develop and adapt the technology of the blockchain in areas such as logistics, agriculture, healthcare and services. Earlier it was reported that the President of China Li Jinping (Li Xinping) called the blockchain «revolutionary technology» that will be an important part of the so-called fifth technological revolution.
This partnership, concluded on 20 June 2018 between THEKEY and Information centre of the Ministry of social services and security (MHRSS) and the Chinese Association of social insurance (CSIA), is the latest step in the fight for global technological superiority in the industry of the blockchain.
This partnership could potentially offer to the state authorities, China’s ability to scale its efforts in performing the functions of social insurance using the technology of the blockchain and the revolutionary technology of digital identification THEKEY. In addition, the partnership may work in other areas, such as agriculture and tourism.
Theoretically, the Chinese government can create a system based on the blockchain, through which it will perform its obligations for social insurance, such as benefits, pension payments, medical insurance etc. For this, the government can use THEKEY developments in the field of digital identification and rapid electronic payments. THEKEY will be able to boast success for many blockchain-companies, if the objectives of cooperation will be achieved.
Catherine Lee expressed his delight at the potential scale of technological developments THEKEY in partnership. Describing this opportunity as «unprecedented,» she said
«Until now, the blockchain app is mainly focused on issuing and making payments in bitcoin and generate a profit from fluctuations in the prices of tokens. They were rarely used anywhere on a large scale. However, the new cooperation, which involves the use of technology for the benefit of the 1.4 billion Chinese citizens can dramatically change the health care industry. This will be a global breakthrough, signaling the real value of the use of the blockchain for the benefit of society».
The new Fund is aimed at addressing the technical and regulatory challenges to advancement in the commercial application of the technology. The Fund, she said, will be used to support educational and business research in this area.
The Chinese government actually actively invests in the development of the blockchain in the country. In April in Hangzhou with the support of the city authorities was launched
Fund to invest in blockchain startups. In addition, in the same month, the administration of Shenzhen supported
the launch of a similar Fund.