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CSIRO’s Data61, in collaboration with Commonwealth Bank (CBA), is testing blockchain potential in creating smart money.
“Smart money” can be understood as programmable money which has certain conditions attached to it, which helps it understand “what it can be spent on, who it can be spent by and when it can be spent.”
The project partners have selected the National Disability Insurance Scheme (NDIS) as the first case study for the proof of concept (POC). The NDIS was selected as it involves highly personalised payment conditions – participants have individualised plans that can contain multiple budget categories – each with different spending rules.
Called “Making Money Smart,” the trial aims to enhance the experience of participants and service providers in the NDIS through the creation of smart money.
As part of this trial, Data61 and CBA have developed an app, which allows participants to manage their plan by enabling them to find, book and pay for services from NDIS service providers without the need for paperwork or receipts.
Smart Money is enabled by a blockchain token solution that could integrate with Australia’s New Payments Platform, and is accessed through the app.
“This has been a really interesting research project into how blockchain technology can integrate with new payments technologies to provide more choice, control and flexibility for conditional payments for NDIS participants and service providers,” Dr Mark Staples, Senior Principal Researcher in the Software and Computational Systems program at CSIRO’s Data61, said.
“We’re particularly interested in the broader research opportunity around programmable money, because 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.
“This would benefit customers and reduces the administrative burden involved in managing payments.”
The proof of concept is currently undergoing user testing with NDIS participants and carers, the release said. The project reference group includes the Digital Transformation Agency, National Disability Insurance Agency, Department of Social Services, Department of Human Services, The Treasury, Reserve Bank of Australia, Disability Advocacy Network, Ability First Australia, National Disability Services, New Payments Platform Australia, Australian Digital Commerce Association and FinTech Australia.
CBA and Data61 plan to publish a co-authored Making Money Smart report in November, which will examine the design benefits and limitations of the blockchain-based system for the NDIS use case.
