Treasury Department of Chile launches blockchain platform to process payments. The Chilean General Treasury of the Republic (TGR) manages the tax collection in the South American nation.
TGR proposed this technological project as a solution to the problem of communication between its suppliers (municipalities, institutions, etc.) and the means of payment (through banks). This solution was necessary because at the end of the month transactions were not completely accurate between these three entities. There was a loss of lot of information along the way.
TGR, a government dependent institution under the Ministry of Finance, reportedly met for the first time in October 2018 with the Digital Government Division of the Chilean Ministry General Secretariat to discuss the pilot. At that time, officials announced they would create a blockchain platform to connect citizens, financial intermediaries, and suppliers.
According to the statement in December, the pilot for the platform has now been launched. Chilean Public Institutions process transactions stored on the platform. This includes tax payments or patent fees, on the blockchain. All the nodes in the process are necessary to approve the transaction before it is recorded.
TGR reports that it hopes that both government institutions and banks use a common database. This will help to eliminate data discrepancies, reduce payment time and decrease operational costs. Along with this, a necessary level of personal data security can also be provided.
Chile’s Other Experimental Projects With Blockchain
The Chilean government is exploring blockchain in several areas, including energy and finance sectors. In April, Chile’s national energy regulator announced the launch of an Ethereum (ETH) blockchain project. It is to collect data from the energy sector of the nation.
“The Digital Transformation is an enormous opportunity that the General Treasury of the Republic has, for our role, our mission and for the quality of service that we have to deliver to our taxpaying users and our officials. Nowadays the Digital Transformation will allow us to be much more efficient, more effective, to have greater proximity to our taxpayers and thus also to our own users. We will be able to give a better service. Technology is present and must be used, but this will imply that we have to manage changes, break paradigms. The Digital Government team is supporting us on that, we have four projects, starting with blockchain, which will allow us traceability to all operations, security of information”
-TGR Treasurer, Ximena Hernández.
“The digitalization of these processes is an important challenge for TGR, in the context of the modernization and innovation that we are promoting in our functions,”
In short, this project enables the Treasury to have an automatic, reliable, transparent and secure quadrature among all entities. This minimizes information lost in each transaction.