THEKEY cooperates with Chinese government on social insurance blockchain applications

On the 20th of June 2018, THEKEY, the Ministry of Human Resources and Social Security (MHRSS) of the People’s Republic of China, and the China Social Insurance Association (CSIA) entered into a Cooperative Agreement on Research into Blockchain Applications for Chinese Social Insurance Scheme, which establishes a new National Laboratory dedicated to exploring Blockchain Technology applied to Social Insurance. This is the official launch of THEKEY’s application of blockchain technology in service to the world’s largest insurance entity.

THEKEY also announced the launch of a Scientific and Research Fund through which, over the next five years, it will channel a total of 20 million USD to both Chinese and global research institutes for the purpose of comprehensively addressing all of the challenging technical, management and regulatory issues that lay ahead.

THEKEY is dedicated to fundamentally improving the management of China’s social insurance services and, consequently, the efficiency, resilience and health of its funds.

In fact, the application of blockchain technology in social insurance industry is unprecedented.

So far, blockchain application mainly focuses on the issuance and payment of cryptocurrency and generates profit from the token price fluctuation. It has rarely been applied in any industry on a large scale. Only if blockchain technology can be utilized in the major industries, will it realize its social value and then its commercial value. To be applied by the world’s largest insurance payer in services to 1.4 billion Chinese people, it is anticipated to fundamentally change the healthcare industry. It will surely be a global breakthrough signaling the real world value and use of blockchain technology for the social good.