A bill was introduced by Buenos Aires’ lawmaker Dario Nieto, which aims to provide transparency in social aid payments with the use of blockchain systems for this purpose.
Nieto has complained about the various intermediaries that make money via these social campaigns and how these activities can be eliminated with the introduction of blockchain technology.
Senator Dario Nieto said that the traceability that blockchain technology has to offer has made it quite popular in a number of areas.
The lawmaker for Buenos Aires proposed the use of this technology for managing social aid payments. In order to do so, he recently introduced a bill.
This bill would be helpful in ending a number of activities that are associated with these programs. He stated that the payments obtained via these social aid programs go into the hands of numerous intermediaries.
He went on to say that these intermediaries then use these payments for making money, or they force recipients into engaging in political activities.
He asserted that these social aid payments were being widely used for politics, as abusive practices are used by a lot of social movements’ leaders for extorting people.
These include asking for a percentage, demanding monetary returns, or ordering them to block and march in the streets.
Nieto stated that blockchain technology could be helpful in this regard because it would allow every payment to be traced and would eliminate the need for middlemen.
He elaborated that when blockchain technology is implemented, then the money would go directly from the Ministry of Social Development and into the hands of the beneficiary.
This would eliminate any voluntary contributions, or forced ones and no favors would be demanded, such as attending marches.
It should be noted that this is certainly not the first time that Nieto has introduced a bill related to blockchain technology.
A bill had already been introduced by the lawmaker that involved the use of blockchain tech for controlling state purchases as well as contracts.
The city of Buenos Aires has proven to be very welcoming when it comes to embracing blockchain technology in its infrastructure.
The city is currently undergoing a modernization program and has entered into the final stages of the implementation of an ID system named TangoID, which is based on the blockchain.
According to the government of Buenos Aires, the said program would begin working by January of next year.
Back in August, it had also been announced that Buenos Aires would also run Ethereum nodes as it wanted to learn more about the chain for the purpose of regulation.
The city also confirmed in April that it intends to start accepting tax payments in the form of cryptocurrency from the next year.
The pro-blockchain stance is not really surprising, considering the popularity of the technology in a number of countries and its widespread use in different industries.
The transparency that blockchain can offer is second to none and this has given its demand a boost.