Chinese Ministry Explores Blockchain Solutions to Improve Charity Tracking System

China’s Ministry of Civil Affairs, the government agency responsible for the country’s social and administrative matters, is exploring the integration of blockchain technology into its existing charity tracking system in an effort to boost transparency of social service affairs.

In an effort to bring greater visibility to its volunteer services, the Ministry of Civil Affairs has published an Action Plan on September 10, outlining a number of areas where it intends to apply internet technology, including “social organization, social work, volunteer service, charitable fundraising,” among others.

As part of the plan, the ministry is modernizing its current charity tracking system by exploring a number of Blockchain solutions and is expected to make a final decision by the end of the year, while the project is slated to be completed by 2020.

The ministry’s move, as it would appear, is a part of a broader initiative to restore public trust in charitable activities after years of being embroiled in numerous controversies and online scandals which have severely tarnished the reputation of volunteer service in the country.

As further detailed in the plan, the ministry has been working with provincial and municipal agencies towards the aggregation of existing government charity databases into the blockchain network, making data on charitable funds more visible to the public through a distributed network.

Apart from traditional charity organizations, other Chinese multinational conglomerates such as Tencent and Alibaba have also introduced their own donation services through mobile applications.

In as early as 2016, Alibaba’s affiliate Ant Financial has been pioneering Blockchain-powered charity platforms in an effort to bring greater transparency and accountability to charitable fundraising activities, a project that has since massively expanded over the years.