Australia's CSIRO, CommBank Complete 'Smart Money' Blockchain Trial

Australia's federal science agency CSIRO and CommBank have trialed a blockchain payments prototype they say could save "hundreds of millions" a year.

AccessTimeIconNov 13, 2018 at 9:00 a.m. UTC
Updated Sep 13, 2021 at 8:35 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Australia’s federal science agency and one of the biggest commercial banks in the country say they have completed a successful trial of a prototype blockchain app that aims to make money "smart."

The Commonwealth Scientific and Industrial Research Organization’s (CSIRO) Data61 division and Commonwealth Bank of Australia (CommBank) announced the end of the trial Wednesday, saying the blockchain-based "programmable money" app could improve the management of insurance payouts and budgeting.

Part of a blockchain project dubbed Making Money Smart, the trial saw participation from 10 members of the country’s National Disability Insurance Scheme (NDIS), allowing them to cut administration costs and remove paperwork.

The app is based on a blockchain token coded with smart contracts allowing participants and service providers to execute payments based on pre-defined conditions, such as who can spend which funds by what deadline.

"We're excited by the potential to enable NDIS participants to exercise greater choice and control over their disability support services, while streamlining budget management and removing the need for paperwork," said Julie Hunter, CommBank's head of government and ADIs.

CSIRO and CommBank believe that if the prototype was developed and implemented at a full scale across Australia, it could save “hundreds of millions of dollars annually,” estimating that users of the app could potentially save 1–15 hours per week and 0.3–0.8 percent of annual revenue.

Mark Staples, Data61’s senior principal researcher in the Software and Computational Systems program, said that the use of blockchain could help them innovate “many payment environments and unlock network-effect benefits.”

He added:

"This could include more directly connecting citizens to public policy programs, empowering people to optimise their spending through things like smart savings plans and smart diets, and reducing costs for businesses, including through the potential for self-taxing transactions."

The CSIRO and CommBank first announced the plan to test the application in early October.

Australian dollars image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.