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Singapore's DBS Bank has successfully piloted a groundbreaking solution that leverages blockchain technology to streamline government grant disbursements, the bank said in a statement on Thursday.
In collaboration with Enterprise Singapore and the Singapore Fintech Association, DBS said its pilot demonstrated how programmable grants can enhance governance, improve efficiency, and provide businesses with faster access to government funds.
Conducted during the Singapore Fintech Festival 2023, the pilot saw 27 fintech members receive grants through a blockchain-based platform. By using smart contracts, the solution automates the disbursement process, ensuring that funds are only released to approved recipients and upon the fulfillment of specific conditions. This not only reduces the need for manual intervention but also enhances transparency and accountability, the bank noted.
Han Kwee Juan, country head of DBS Singapore, emphasized the significance of this innovation: Smart contract technology automates and streamlines grant disbursements for government agencies to enable faster, 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."
Shadab Taiyabi, president of the Singapore Fintech Association, echoed the benefits of the solution, stating that it "streamlines business grant disbursements, enabling local companies to receive payouts more quickly and efficiently."
The pilot builds on DBS's experience with Purpose-Bound Money (PBM) and its participation in the Monetary Authority of Singapore's Project Orchid, a multi-year, multi-phase project led by MAS to develop the technology infrastructure and technical competencies necessary for a digital Singapore dollar.
As the bank continues to explore the potential of blockchain technology, it aims to expand the use of programmable grants to other government agencies and industries. As Singapore continues its journey towards a Smart Nation, blockchain-based solutions like these will play a crucial role in shaping the future of government services.
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