TGR blockchain: Accelerating Public Payment Services

Banking CIO Outlook | Thursday, March 28, 2019

Today, groundbreaking technologies are emerging, and even established organizations are rethinking their strategies. The prolonged standing use of network technology for transferring data has significantly affected supply chain processes and blockchain technology with its widespread acceptance and progress. In the year 2017, the bitcoin transactions showed exponential growth alongside massive public interest. Its applications range from smart contracts to business logistics, and yet its entire range of potential applications is unclear.

As governments around the world continue to implement to blockchain technology to resolve different issues and improve public services, the Chilean government seems to be jumping on the blockchain bandwagon as well. The Chilean government wants to introduce a blockchain treasury to enhance the process of public payment, according to the press statement recently published. This project is supervised by the Chilean General Treasury of the Republic (TGR), a government agency functioning as an affiliate of the Ministry of Finance. The TGR is in charge of handling the national tax collection.

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During the first TGR stakeholder meeting in October 2018, the  Chilean Blockchain Treasury platform was designed. The Digital Government Division of the Chilean Ministry General Secretariat discussed ways to improve fiscal policy and other processes of public payment. Officials then announced they would begin working on a blockchain platform connecting citizens, financial brokers and service providers. The new blockchain platform for the Chilean Treasury is used to increase public payment services. TGR blockchain platform includes an automated system that works via multiple node networks that allow data to be authenticated in real time while ensuring that accurate information is collected. Each transaction must be approved by nodes participating in this environment before it is registered on the blockchain. These data are then transferred to all participating nodes so that each node can have the same transaction data as an unchanged version.

The development and introduction of blockchain-friendly legislation will enable Chile to stand as a pro-blockchain nation. These actions are intended to attract technology-friendly investors and entrepreneurs to develop innovative blockchain solutions for various industries in the country. As digital retailers use the technology for efficient collection or processing of online payments, blockchain technology is tending to dominate the e-market. This technology improves income by expanding operations and entering into cross-border transactions with users.

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