UN Embraces Blockchain to Transform Pension System and Digital Identity Verification

The United Nations is turning to blockchain technology to modernize its pension system, with a recent study highlighting blockchain as the “ultimate technology for digital identity verification.” This innovation is now driving the UN to expand its blockchain-based system across its network and potentially share it with other global organizations.

The initiative was applied to the United Nations Joint Staff Pension Fund (UNJSPF), which previously relied on a 70-year-old, paper-based system to authenticate more than 70,000 beneficiaries in 190 countries. The outdated process was not only slow but also prone to fraud and human error, leading to around 1,400 payment suspensions annually. To solve these inefficiencies, the UN, in collaboration with the Hyperledger Foundation, launched a blockchain-powered Digital Certificate of Entitlement. A pilot program began in 2020, followed by full implementation in 2021.

The shift to blockchain drastically reduced processing times by eliminating the need for physical paperwork such as mail, scanning, and archiving. Beyond efficiency, blockchain technology addressed major security risks by removing single points of failure found in centralized systems. It also enabled a more transparent and collaborative verification process, reducing repetitive identity checks and enhancing trust across multiple entities.

According to the white paper, the success of this transformation demonstrates how blockchain can serve as a cornerstone for secure, scalable, and inclusive digital public infrastructure. Sameer Chauhan, director of the United Nations International Computing Centre, emphasized that the project not only delivered a functional prototype but also provided an operational framework for cross-agency cooperation within the UN system.

Encouraged by these results, the UN is exploring ways to extend the blockchain-powered identity system across its agencies and promote it as a “digital public good” for other international organizations. This move could mark a significant step toward global adoption of blockchain for digital identity verification, security, and efficiency in public sector systems.