The launch of this blockchain platform is part of a quick response to the limitations that the COVID-19 imposed on the current world scenario.
Chile’s Central Securities Depository (CSD) recently announced the launch of a blockchain tool for the next shareholder elections. The CSD would use a blockchain platform as a base system to hold the elections.
According to the data that the CSD revealed, the platform will work to manage votes such as those of assemblies or shareholders’ meetings. The main characteristic of this new system is that it can work remotely, and through a previous register. This is very useful now since, due to the COVID-19 outbreak, there should not be large concentrations of people in one place.
In a local press release, the CSD explained that the electoral platform based on blockchain technology could be much more secure than the current election system. This new platform would provide greater confidence and traceability among voters. According to the publication, the tool would be active from April and could work in the next elections.
The press release emphasizes the regulations that support the use of this type of tool, citing the regulation number 435 of the Commission for the Financial Market. According to rule 435, the use of alternatives that perform and certify remote voting is valid.
The objective of using these tools is to promote the use of new technologies that help facilitate administrative processes within companies. Besides, CSD considers it necessary to implement solutions that promote remote voting. This decision is due to the circumstances the world is going through with the current lung disease COVID -19.
As part of another important aspect, the text explains that the level of participation in this type of election has been decreasing over the years. Organizers of the election hope that facilitating the process through digital tools will make it much more comfortable and easy to participate. This is what thinks Javier Jara, who is the Commercial Manager of CSD.
At the end of the statement, CSD notes the benefits that the implementation of this blockchain solution would bring. Its main point of interest will be allowing the participation of contributors and shareholders who could not attend the same meeting point, even after overcoming the current COVID-19 crisis.
Another important aspect is that when using a blockchain-based digital registry, it will be much more difficult for the system to suffer ransomware attacks. Furthermore, the text that the CSD issued highlights that, using blockchain technology, it is possible to audit the process with greater accuracy and in less time than with the traditional system.
Although the statement emphasizes the use of blockchain technology with the main emphasis, it does not explain if the CSD would use an additional system as the basis. Also, it does not specify if the network is public or private neither the reason for the selection of a blockchain platform before any other digital platform.
However, the note attaches and approval of the Santiago Stock Exchange, highlighting that the application is part of this institution and the importance of using blockchain technology.
By María Rodríguez