The Commonwealth Bank of Australia(CBA) and Data61 have completed their blockchain trials for a ‘smart money’ system for Australia’s National Disability Insurance Scheme(NDIS), reported by Business Insider Australia on Nov. 13.
Data61 is a digital innovation hub that forms part of the Commonwealth Scientific and Industrial Research Organisation (CSIRO) — an Australian government corporate entity that undertakes scientific research to advance diverse local industries. CBA is known to be Australia’s largest bank with a market cap of $93.5 billion.
This smart money, which is also known as programmable money, will be used to manage insurance payouts, budgeting and the management of trusts and charities in Australia. It also reduces the need for investors to assess payments after-the-fact when checking for compliance with spending rules.
The technology was checked with 10 participants and carers using a prototype in the NDIS. Participants and carers estimated the app could save them ample amount of time, ranging from one hour to 15 hours per week. Service providers estimated potential annual cost savings as a percentage of revenue of 0.3% to 0.8%.
The report named ‘Making Money Smart‘ showed the potential to reduce administration costs for disability service providers and the dangers of scams and accidental misspending.
CBA’s modeling depicted that the economic payoff of the system would hit “hundreds of millions of dollars a year.”
Dr. Mark Staples, Senior Principal Researcher in the Software and Computational Systems program at CSIRO’s Data61 said:
“This has been an important research project for understanding the benefits and limitations of blockchain technology in the context of conditional payment environments, such as the NDIS,”
“Our use of blockchain added new kinds of programmable behaviors to the smart money in the prototype system. This automation and flexibility could reduce friction and enable greater innovation in many payment environments and unlock network-effect benefits.”
A blockchain solution for the welfare payment delivery has been in the books of the Digital Transformation Agency(DTA) ever since May. Data61 has previously suggested its smart money system could be integrated into the solution.
Link to original news article here.