Singapore’s DBS has completed a pilot project using blockchain technology for programmable government grant payments to businesses.
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The bank worked with Enterprise Singapore and the country’s fintech association on the pilot, which saw programmable disbursements made to 27 local fintechs.
Using DBS’s permissioned blockchain, government agencies were able to determine and schedule the conditions governing the payment of the grants. The conditions included payment only to approved beneficiaries and subject to certain commercial conditions being met. Once smart contracts verified that the conditions were met, the grants were automatically paid in cash.
This enhanced governance control reduces the need for manual cash handling by intermediaries, allowing businesses to receive cash payments from the government faster, DBS said. Additionally, the bank’s permissioned blockchain enables full visibility of the entire process.
Han Kwee Juan, Country Head of DBS Singapore, said: “This programmable grant disbursement pilot breaks new ground with a new payment instrument that builds on the learnings from our Purpose Bound Money pilots and marks a key milestone in the industrialisation of blockchain technology. Smart contract technology automates and streamlines grant disbursements for government agencies to enable faster and more secure disbursements and payments.
“We envision this payment innovation being extended to more use cases, including milestone-based project payments, consumer rewards and more.”
