Australia's federal science agency and one of the biggest commercial banks in the country claim to have successfully tested a new type of smart money, powered by blockchain, to make it easier for citizens with disabilities to settle insurance payments.
The Commonwealth Scientific and Industrial Research Organization's (CSIRO) digital innovation center "Data61" and Commonwealth Bank of Australia (CommBank) announced Wednesday that smart money, also known as programmable money, could be used to help manage insurance payouts, budgeting, and the management of trusts and charities in Australia.
The technology was trialed in the National Disability Insurance Scheme (NDIS) using a prototype app.
It shows how smart money could give participants more choice and control over their disability support services, while cutting administration costs, removing paperwork and reducing the risk of fraud or accidental misspending.
The findings of the "smart money" proof of concept were released in a new report titled "Making Money Smart."
The NDIS prototype app aims to test the functionality of smart money enabled by a blockchain token solution that could integrate with Australia's New Payments Platform.
Ten participants in the NDIS scheme, carers in the CommBank Innovation Lab as well as a small number of medium-sized disability service providers tested the app.
Participants and carers estimated that the app could save them one hour to 15 hours per week, while service providers estimated potential annual cost savings of up to 0.8 per cent.
CSIRO says that the economic benefits would equate to hundreds of millions of dollars annually, if the proof of concept was developed and implemented as part of a full-scale solution across Australia.
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