In Argentina, and in the region in general, the awarding of subsidies to people represents a very sensitive point for all government agencies. Along these lines, the government of Javier Milei is in a process of reviewing them; Recently, he announced the suspension of more than 27 thousand social plans due to irregularities.

In this context, the need arises to generate more transparent systems to generate positive impacts both on the population that needs assistance and on the economies in which they live. It is blockchain technology that is ready to provide superior solutions. Adopting blockchain for the delivery of subsidies could guarantee not only greater efficiency and transparency to the process, but it can also act as a shield against corruption.

Thus, facing the objective of governments and organizations seeking to improve their subsidy distribution systems, the implementation of blockchain appears as a key strategy to ensure that these resources really reach those who need them, without falling into irregular practices or intermediaries.

Basically, a blockchain-based platform carries out tokenization, which consists of the digital representation of money, in this case the assigned subsidy, and the dispersion and use of these funds is established through parameterizable rules, transforming them into transactional values. without depending on money. In this way, the immutability of the data that is recorded would be guaranteed, in this case, the assignments of payments to the beneficiaries, also making any type of subsequent audit more effective, agile and economical.


In the case of the application of subsidies,  Leo Elduayen, CEO and co-founder of Koibanx , a pioneer company in providing blockchain infrastructure for the financial system, governments and organizations in Latin America, explains: “ The subsidy is granted in a traditional way to the beneficiary, the advantage is that since this benefit is tokenized through blockchain, it is possible to direct this expense to needs that the province or municipality has for each citizen, in this way the amount of the subsidy is prevented from being used for other purposes for the which was designated.”

An example of targeted consumption in order to stimulate the local economy is the case of the Municipality of Marcos Paz where a blockchain platform was developed: “ Activos Marcos Paz”, a program of belonging, inclusion, savings and benefits. Through the app you can exchange and receive tokens, which is the digital representation of the “assets”, to buy products, carry out transactions through QR codes or ID to obtain benefits, discounts and promotions that can only be used in stores. Township. In this case, blockchain technology makes it possible to facilitate the economic and financial management of people and at the same time improve the management of the municipality, efficiently encouraging consumption within Marcos Paz.

Regarding its implementation, Elduayen explains that  “the blockchain platform that is created for this purpose can be integrated with existing channels, State agencies and provincial banks, thus interacting with existing accounts via transfers, credit cards, or with digital wallets. existing to facilitate its implementation.”

“Blockchain technology already has the maturity and reliability that consolidates it as a powerful tool to avoid fraud, thus transforming the way in which resources that are very sensitive for any state administration are being managed and delivered,”  explains  Matías Part, advisor of blockchain and web3 companies,  who also highlights its qualities.


  1. Immutability: the main characteristics of blockchain are immutability and traceability which clearly avoid the existence of intermediaries and irregularities, since the subsidy is personal and its use is defined for defined expenses, for example: food.
  2. Transparency: The application of smart contracts on a blockchain allows the automatic execution of predefined conditions. This means that the rules governing the allocation and distribution of subsidies are established transparently and without the possibility of manipulation. Eliminating middlemen and automating the process dramatically reduces opportunities for corrupt practices. That is, the money or resource can only be used for the assigned purpose, for example: purchasing food.
  3. Traceability to avoid fraud: The transparency inherent in blockchain technology allows each stage of the subsidy delivery process to be tracked. Any attempt at corruption or embezzlement becomes more difficult to hide, as each transaction is accessible and verifiable by all interested parties. This acts as an effective deterrent and makes it easy to quickly identify any suspicious activity.
  4. Elimination of intermediaries : The decentralization of the blockchain significantly reduces dependence on intermediaries, thus decreasing opportunities for corruption. Smart contract execution and process automation largely eliminate human intervention, reducing the possibility of improper manipulation.
  5. Privacy and secure data: Data security is a crucial concern in grant administration. Blockchain technology, by decentralizing information and encrypting it, provides an additional layer of security. Citizens can have confidence that their personal data is protected, while authorities can access the necessary information in an authorized and secure manner.


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