Blockchain Technology has recently added a new feather to its hat as it would be used to resolve the issue of exorbitant illegal fees that migrant workers are forced to pay in the city of Hong Kong. This technology is already being used in multiple areas because of the many benefits that it offers.
UN Migration Agency has announced that it would make use of blockchain to stamp out these illegal fees that are imposed on the workers. The International Organization for Migration (IOM) (the UN Migration Agency) in collaboration with blockchain financial services and technology firm Diginex launched an advanced tool powered by blockchain to address the problem of exploitation of migrant domestic workers in Hong Kong.
Certain agencies have also been invited to implement this tool to adhere to the recruitment principles of the IRIS Standard.
Blockchain technology is being used as it will enable the strengthening of data management and data integrity with its set of ‘immutable, secure, data records’ which would ensure a high degree of transparency and visibility.
Hong Kong witnessed a flood of domestic workers almost every year with around 390,000 domestic workers which implies that 1 in 10 workers are migrant— almost 98% of which are women and almost 56% have had to pay illegal and high fees charged by recruitment agencies.
The IOM is an intergovernmental agency on migration and therefore, focuses on any problem area faced by immigrants and provides a pragmatic resolution of these that would help industry associations, migrant communities, governments, and other stakeholders in the process. The IRIS-SAFER has thus been conceived to mitigate and resolve any migrant related issues like the one faced by these workers in Hong Kong.
Guiseppe Crocetti, Chief of Mission, IOM, China, has said
Mark Blick, The Head of Government Solutions at Diginex, has remarked,
IOM and Diginex also have plans to introduce the IRIS-SAFER to recruitment agencies in other jurisdictions spread throughout the globe. The test of the tool would be in Hong Kong SAR and a few other countries where migrated workers play a significant role in the workforce. Diginex and IOM have signed a Memorandum of Understanding (MoU) to develop the IRIS-SAFER tool last year and have anticipated a successful rollout of the tool in this region.
Diginex collaborates with different institutions, corporations, government agencies, institutional investors, etc. with the aim to make the business process more safe, efficient, and simple. It strives to make digital assets accessible to a larger extent and with its emphasis on a collaborative approach, it aims to secure global cooperation with more institutions adopting blockchain technology and using digital assets in a regulated manner. Therefore, with its partnership with UN Migration Agency, IOM aims to resolve the challenges that migrant workers are facing and is expected to be a step forward towards the human management of the migration problem.