China could start to use a blockchain-based crypto-reward system for army personnel. The main goal is to incentivize individuals for their academic excellence and effective completion of tasks. The information was released a few days ago by the South China Morning Post.
China Could Reward Soldiers In Cryptocurrency
Chinese soldiers could start to be rewarded in cryptocurrency if they effectively complete different tasks.
As per the report, the People’s Liberation Army (PLA) could apply blockchain technology in order to incentivize personnel and soldiers. This would be certainly helpful to bring innovation to the whole military system in the country.
The goal would be to establish a digital currency token reward system for the performance of soldiers. These rewards would be given according to training performance, task completion and development of speciality skills, among other things.
The report reads as follows:
“To award or deduct tokens according to one’s daily performance and thus generate an objective assessment would effectively energise the human resource management. […] Blockchain technology solved the problem of traditional digital data being vulnerable to tampering or hacking and lack of credibility.”
At the moment there is no information on whether they will be using public cryptocurrencies or they would be using a digital asset created by the government. However, it is highly likely the second option will succeed.
Additionally, they didn’t explain whether the cryptocurrency or digital asset would be available for other individuals in the country in case it is created by the government. There is also no information regarding where it would be accepted, under which conditions or which would be its value.
This comes just a few weeks after the Chinese President Xi Jinping praised blockchain technology and pushed for larger adoption in the country. At that time, Bitcoin and other cryptocurrencies surged by over 40% in just a few hours.
Distributed Ledger Technology (DLT) has been expanding all around the world and it is already being used by governments, including China, to improve logistics, processes and reduce costs.
Private companies are also exploring different solutions related to blockchain technology to help them improve specific areas and improve their performance.
China has also been working in a solution that would allow detecting markings on a target automatically. This would register all the data on a blockchain for each of the training individuals and help them better understand the results obtained while training.