Chile will Use Blockchain Technology in Tax Collection

The Chilean Parliament is currently reviewing a bill on the definitive adoption of blockchain technology. Although it has not presented the approved use of cryptocurrencies

Chile seeks to process public payments using a platform developed with blockchain technology. The news was announced a few days ago, through the social networks of the General Treasury of the Republic (in Spanish, TGR). The system was implemented last December, with the supervision of Digital Government, a department attached to the General Secretariat of the Presidency.

The project is called “TGR Blockchain” and, according to the information provided by government entities, its development was planned due to various discrepancies between the information registry, the payment issuer and the recipient of the taxes. With this new system, they also want to promote transparency, immediacy and the modernization of comfortably fulfilling these public payments.

Ximena Hernández, General Treasurer of Chile, said that this project represents a firm challenge in the search for the digitalization of payment processes.

Regarding the new process of tax collection, a press release clarified that: “This technological project is proposed as a solution to the square problem that the TGR represented among the suppliers (institutions, municipalities, among others) and the means of payment (Banks), which meant that at the end of the month the square of the transactions was not completely accurate between these three entities, due to the information that was lost along the way “.

This system realizes the block in an “automatic” manner, using a series of nodes in which the information is transported without being modified in any way, which generates reliability when sending these transactions, eliminating calculations errors at the moment of closing balances.

It was not mentioned if this technology will be supported through a private platform or if it will be supported on a known cryptocurrency. Although in Chile, no progress has been made in the adoption of the authorized use of any cryptocurrency; thus, implementing this technology represents real confidence in blockchain.

The Friendliest Latin American Country with Technology

The use of blockchain technology in taxes payments is not the only effort made by the government of Chile. Recently, the National Energy Commission (in Spanish, CNE) established a similar system, using Distributed Ledger Technology (DLT) to legitimize information in the energy sector. The platform is called “Open Energy” and is used as a means to manage information related to the sector.

“Economy of the Future”. This was the name of the government program with which the Ministry of Economy of Chile seeks to take the best advantage of technology. The project formed a research group in charge of studying the possible new uses of blockchain technology in government trade operations, identity verification, health, among others. Julio Pertuzé, the program’s Director, assures that these initiatives boost the nation’s growth and puts Chile one step closer to the “Fourth Industrial Revolution”.

By María Rodríguez

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