Commonwealth Bank of Australia (CommBank) and the Commonwealth Scientific and Industrial Research Organization (CSIRO) are working on a case study with the National Disability Insurance Scheme (NDIS) that will see citizens with disability transacting in blockchain tokens.
The two partners are working on ways to make it easier for citizens with disabilities to settle their insurance payments using ‘programmable money.’
How it works
The Common wealth bank (CBA) has developed an application under the project “Making Money Smart” which participants can use to access a blockchain token that has been pre-integrated with the “Australia’s New Payments Platform.”
The ‘Smart money’ or Programmable money is attached with instructions on who can spend it, on what can it be spend on and the deadline- when it can be spend.
Participants in NDIS have tailored plans with several budget segments and respective spending rules. This makes NDIS an ideal participant in the trial program. This service will enable users to “find, book and pay for services by NDIS service providers without paperwork.”
If the program becomes a success, the government can also have ease tracing money flow in the network which will bring about transparency and accountability. Payments in blockchain tokens will definitely be cheaper compared to traditional methods. Participants can save a great deal in transaction fees using the tokens.
Besides cost and transparency, the payment will also be fast and quite reliable. Dr. Mark staples, senior principal researcher at CSIRO hopes that programmable money would be adopted in other mainstream business transactions as “it should reduce friction in business transactions, and enable companies to create new business models and innovative ways of delivering and paying for products and services.”
The head of experimentation and blockchain, Innovation Lab, CBA Ms Sophia Gilder believes that programmable money will pioneer a new era of money and the way payments work.
A joint report by CSIRO and the Common wealth bank (CBA) detailing the benefits of the payment system, its setbacks, user feedback and recommendations shall be released in November.