The Commonwealth Bank of Australia (CBA) and the Commonwealth Scientific and Industrial Research Organization (CSIRO) have developed an application to test whether blockchain technology can increase the efficacy of insurance payments, according to an official October 9 announcement from CSIRO.
According to the announcement, the trial, dubbed "Making Money Smart," is being conducted through Australia's National Disability Insurance Scheme (NDIS). The NDIS was chosen for this trial because of the highly specific payment conditions listed in insurance documents, as well the presence of individual plans that can contain multiple budget categories.
The idea behind the proof-of-concept trial is to give participants more control over their insurance plans by allowing them access to a smartphone application where they can "find, book and pay for services from NDIS service providers without the need for paperwork or receipts."
To do this, the trial participants are creating "smart money," which CSIRO also refers to as "programmable money." Using executable distributed code contracts (EDCCs, or "smart contracts"), developers want to be able to distribute money at specific times and to specific people, which has the potential to eliminate confusion over disability insurance payments.
A report on the progress and finding of the trial from CSIRO and the CBA will be published in November.
Australia has been very active in the blockchain technology ecosystem as of late. In August, ETHNews reported that the CBA had partnered with the World Bank to settle the world's first public bond created and managed exclusively with blockchain technology. Just a few days later, Australian officials announced the development of the Australian National Blockchain as a way to help alleviate the hassle of sharing legal documents between different companies.