Decentralized Blockchain Pension System Can Repair Incompetent System Says Ex Lehman Brothers Investor
Former Lehman Brothers Investor Says Solution to Incompetent Pension System is Blockchain Technology
Pension crisis is on the rise, as many countries around the world, including the likes of America, UK, and China are faced with increasing pension expense rates and the inability to payout the general public’s rightful payments. According to the World Economic Forum, pension deficit can easily sit at nearly $400 trillion by 2050.
What can global leaders do to reduce the accumulating deficits? It seems that former Lehman Brothers investor and CEO of Akropolis, Anastasia Andrianova trusts that the answer is none other than blockchain technology.
According to statement shared by Andrianova to Forbes, “When an economic crisis occurs, the first thing that a state will do is tap into pension funds or reserves. Both public and private funds are raided. I’ve seen this happen firsthand […] Pension payouts are cut first. This affects people the worse.”
Andrianova no longer sees traditional pension systems as being fit and views it as a cost inefficient system that can further “decimate savers’ pot, mismanagement is rife, and programs are mired in complexity.” She also added that with such problems comes longer and expensive retirements due to “life expectancy rises”.
Th lack of transparency is another factor that the CEO pointed out and hence resulted in her deciding it was time to further deliberate on the usefulness of blockchain technology. Ultimately, her goal is to “come up with a solution that would provide for decentralized custody, an auditable track record […] and a single immutable source of truth.”
Akropolis is supposedly in the works of establishing a protocol that would promote a decentralized approach towards pensions. Like majority of the blockchain projects to date, Andrianova plans to bring together the necessary players involved under one ecosystem, while ridding the system of middlemen. Most importantly, smart contracts will be implemented to avoid unaware changes and manipulation.
As per Andrianova’s quote shared via Forbes:
“We are building a platform that users can trust, where no single party can take their money away. It’s as basic as that. I am not sure too many people are aware of this, but even in the U.S pension fund raids have become a massive issue,” adding that “blockchain is [a tool] being used to solve a problem needing innate security and a single source of truth.”
If Andrianova succeeds in her endeavor, this is one of many real-life use cases that the blockchain can add to its list, which could potentially lead consumers to reconsider its likes. Given the size of the matter at hand, do you believe blockchain technology is a suitable solution in dealing with the pension system?