financial services group DBS We plan to launch a live pilot through our partnership with open government products (OGP) will use tokenized SGD to issue purpose-only money-based (PBM) vouchers that facilitate real live transactions with select merchants.
This issuance Monetary Authority of Singaporeof (MAS) project orchidIt aims to develop the technological infrastructure and capabilities to enable the Digital Programmable Singapore Dollar (DSGD).
DSGD will be used to create PBM vouchers issued by DBS using smart contract functionality provided by our partner, OGP.
This allows issuers to program and self-execute the distribution and use of vouchers to designated recipients.
It benefits small businesses through instant settlement, payment and collection at banks when customers use PBM vouchers to make payments.
This allows small businesses that are short on time and resources to increase cash flow and save time on back-end administrative tasks.
The current process takes 1-2 days of processing time before the merchant actually sees the amount credited to their bank account.
According to the official announcement, DBS believes that live pilots with OGP can be applied to scenarios such as: Town Development Council A voucher scheme in which Singaporean households receive CDC vouchers to combat inflation and rising costs of living.
Currently, most of these vouchers are digital vouchers, but they require merchant backend management. However, PBM vouchers allow merchants to receive payments instantly, eliminating the need for back-end matching and increasing productivity and efficiency.
While the pilot is set to be introduced first to the food and beverage industry in Singapore, PBM vouchers issued using tokenized SGD will naturally spread over time to Singapore’s many coffee shops, hawker centers, It could benefit the restaurant.
according to See Tse Kungthe head of Singapore for DBS, many of the companies it touches are interested in realizing productivity gains through digitization, but are unsure how to do so.
“PBM is In particular, governments, businesses and individuals will adopt the use of digital money in interconnected networks, with a collective vision to enable a global financial infrastructure for fully transparent and efficient payments. When we come together, it can be very transformative,” Kuhn commented.
He continued, the pilot “We further strengthen how blockchain technology can be the foundation for building the next-generation payment and settlement infrastructure.
“Not only because of its immutability and accessibility, but also because of its programmability by leveraging smart contracts.”
Up to 1,000 select consumers and six merchants are expected to participate in the live pilot, which will begin on October 27 and run for a total of four weeks.
DBS expects programmable money to apply to the p region as well.Facilitation of multi-step conditional process payments, including compulsory giving, sustainability financing, and transfer of payments in real estate transactions.
“By piloting ‘Purpose Bound Money’, we will demonstrate how it will be easier for governments to implement voucher programs through smart contracts,” added the OGP director. Lee Hong-ui.
Hongyi said the pilot is looking to test how payments can be made faster and at a lower cost while reducing reconciliation work for banks, voucher issuers and merchants.
“Once validated, the model where merchants immediately receive DSGD each time they redeem a voucher in place of a voucher (and must be reimbursed separately) is extensible to other government programs in the future. I could be a model,” he commented.
DBS and OGP have also contributed to a MAS-led industry white paper that introduces the concept of purpose-bound money and the potential benefits of programmable digital currencies through various use cases.