The Australian federal government is testing a blockchain application to explore the use of blockchain technology to create ‘smart money’ for the country’s National Disability Insurance Scheme (NDIS).
Dubbed “Making Money Smart”, the trial is jointly developed by the Commonwealth Scientific and Industrial Research Organization (CSIRO) – Australia’s federal science agency – and the Commonwealth Bank of Australia (CBA), one of the domestic ‘big four’ retail banks.
The proof-of-concept trial will use smart contracts to create ‘smart money’ or ‘programmable money’ as blockchain tokens to the country’s disability insurance program, an announcement on Tuesday revealed, enabling participants and service providers to process payments conditionally.
In essence, the prototype allows citizens to manage their disability insurance plan without the need for any paperwork or receipts ‘by enabling them to find, book and pay for services’ from service providers.
‘The NDIS was selected as the first case study for the proof of concept, as it involves highly personalised payment conditions,’ Australia’s federal science agency explained. ‘In the NDIS, participants have individualised plans that can contain multiple budget categories – each with different spending rules.’
In a notable endorsement of blockchain technology, the ‘smart money’ will also be designed to integrate with Australia’s New Payments Platform, a new national payments infrastructure that enables real-time low-value payments. Read the entire article here.