DBS Bank has started a new test project that uses blockchain technology to make the process of giving out government grants in Singapore more efficient and clear. The test, which was made possible by Enterprise Singapore (ESG) and the Singapore Fintech Association (SFA), shows how blockchain could be used to automate and streamline the sharing of funds, making things much faster and better for government.
Using DBS Bank’s permissioned blockchain, government funds were given to 27 members of the SFA as part of the test. With this method, government bodies and their middle-men, such as the SFA, can set specific rules for how grants are given out. Smart contracts check for compliance instantly and give the money to the rightful recipients as soon as they meet the conditions that were set. Businesses can get their money faster because this process cuts down on the need for human assistance.
In addition, DBS’s blockchain-based system lets everyone see the whole payment process, which makes things clearer for everyone. Because the blockchain is permissioned, only people who are allowed to can access and interact with it. This keeps the environment safe and controllable.
The DBS Bank has a lot of experience with blockchain technology, especially from its work on Project Orchid, a digital currency project run by the Monetary Authority of Singapore (MAS). The ideas learned from Project Orchid were very helpful in creating this customizable grant distribution system.
DBS Bank is already looking into other ways this technology could be used. They want to share it with other parts of the government and find new uses for it, like paying for projects based on milestones and giving rewards to customers. This is a big step toward making blockchain technology useful in businesses in Singapore, and it puts DBS Bank at the center of financial innovation.
