A trial to pay Britain’s welfare claimants using blockchain technology has come under fire by the Open Data Institute.

The Department for Work and Pensions also know as DWP initiated initiated trials with GovCoin Systems earlier in June to pay benefits directly to claimants using a Blockchain system, the same technology behind the decentralised currency Bitcoin.

The Open Data Institute founded by Sir Tim Berners-Lee and Sir Nigel Shadbolt said the system was ‘very concerning’.

The Blockchain provides both complete transparency and security of transactions but also opens up the ‘Big Brother’ discussion as it would allow the DWP to monitor every penny spent by claimants.