Chile’s pension system has faced significant challenges in recent years, prompting calls for reform. Expert María Pía Aqueveque Jabbaz emphasizes that while recent legislative changes are a positive development, they may not be sufficient to fully address the system’s shortcomings. Jabbaz advocates for the adoption of tokenization and other advanced technological solutions as essential steps toward a more efficient and sustainable pension framework. Tokenization, the process of converting rights to an asset into a digital token on a blockchain, could enhance transparency and accessibility within the pension system, potentially improving the management of assets and the flow of information. By embracing these innovations, Chile could not only modernize its pension infrastructure but also set an example for other nations facing similar issues. The integration of technology into financial systems is increasingly seen as a necessary evolution, particularly in sectors that have struggled with inefficiency and lack of trust.

Why It Matters

The significance of incorporating tokenization into Chile’s pension system lies in its potential to transform the way retirement funds are managed and distributed. By leveraging blockchain technology, the system could enhance transparency, reduce administrative costs, and improve the overall trust of citizens in their financial future. This evolution is crucial as countries around the world look for ways to modernize and strengthen their social safety nets.

Source: Original Article