It is sometimes a challenge to find real use-case with clear purpose to leverage new technologies, like blockchain for example. And when such an illustration arises, it is interesting to point it out.
The Commonwealth Bank of Australia (CBA) and the scientific agency CSIRO have developed a new mobile app “Making Smart Money”, using DLT technology in the frame of the National Disability Insurance Scheme (NDIS). This project aims at providing Australian Central Authority with a better view and control on how NDIS uses states funds to provide services to disabled people, as well as significantly simplifying the administrative burden for NDIS participants.
In NDIS, each participant has an individualized plan containing multiple budget categories, with different spending rules, depending on his disability and the services he requires. It quickly becomes a nightmare for participants and NDIS to check budgets, make payments and reconcile paper receipts with reimbursments. The proposal from CBA is to enable smart money through a private blockchain token solution and smart contracts that can interface with the payment platform and execute the payment based on very customized conditions. Hence the smart money drives what can be spent, by who and when, all of this in real-time with a full digitalization that facilitate reconciliation and traceability.
This use-case shows us how programmable money could be a catalyst to re-imagine the payment function and how we use money, demonstrating that one of the most attractive value in blockchain does not only rely on disintermediation but on smart contracts management. One could imagine a payment function being fully embedded in the payer-payee transaction, providing strong security to both parties and focusing back on the initial purpose of money : providing a tool and a shared set of rule to exchange value.
An other interesting outcome from this CBA innovation is to elaborate on how smart money could be a relevant solution in many contexts to improve the effiency of budget management and compliance of expenses with initial budget purpose, for example:
- to help disadvantaged populations or students to better manage their expenses, federating a network of selected service providers and increasing the government insight on social allocations usage and efficiency.
- for Insurance disaster reimbursment to ensure funds are properly used and avoid frauds
- to improve booking and traceability in government public subsidies to territorial agencies, hence having the true understanding on the way funds are spent.
And many other illustrations SKAIZen Group can bring to the table to transform emerging technologies into valuable and meaningful services.
For sure, programmable money is not a brand new concept. Its has been experimented in card many years ago with other technologies. But in this context, the blockchain technology clearly provides a new deal to design and build flexible open framework solutions.