EY has launched a blockchain-enabled solution, EY OpsChain Public Finance Manager (PFM), designed to help governments improve their process for financial management of public funds.
PFM was designed to help governments increase transparency, provide accountable outcomes for citizens and track budgets, expenditure and results. The PFM blockchain allows funds to be tracked in real time and create a single source of integrated financial and non-financial performance information in an effort to support decision making.
EY Global public finance management leader Mark MacDonald said: “Modern public financial management requires focusing on the things that matter most – transparency, accountability and robust evidence for decision-making – all factors that can be enhanced by blockchain technology.
“EY OpsChain PFM is an exciting new tool that helps public finance leaders to assess and improve their finance management systems. It has been very exciting to work with city leaders who continue to push boundaries and embrace new technologies.”
The system has been piloted worldwide. In Toronto, Canada, the city tested the application to way reconciliations and interdivisional fund transfers are managed, as part of an ongoing financial management transformation effort. It was found the system increased transparency between divisions and facilitated more efficient financial and asset performance reporting.
EY noted that as governments around the world are modernising their cities and digitally transforming their process, blockchain technology can impact processes such as tax collection.