DBS Bank Uses Smart Contract Technology to Test Tokenized Fiat
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PBM Vouchers to Use Blockchain Technology
PBM vouchers will be produced utilizing blockchain technology and DBS-issued DSGD, with smart contract functionality made possible by OGP. This will make it possible for issuers to plan and manage the distribution and use of the voucher to specific recipients on their own.
The Monetary Authority of Singapore (MAS) is leading Project Orchid, which intends to create a programmable Singapore dollar. The pilot is a component of this project. DBS will print digital Singapore dollars, and Open Government Products will make it possible to use smart contracts. DBS stated that the initiative's objective is to enable retail storefronts to gain from rapid settlements, transactions, and collections through client use of vouchers, thereby enhancing cash flow and speeding up the process of administrative backend work.
Contributions of DBS Bank
DBS cites quick payments and eliminating backend administration as reasons the trial might help the Community Development Council voucher program mitigate the negative consequences of growing inflation and increasing living costs. Six businesses and 1,000 carefully chosen customers will make up the live pilot's initial, modest scale.
According to DBS, programmable money will also be helpful for sustainable finance, purpose-driven contributions, and making it easier to pay for multi-step conditional procedures like conveyancing fees in real estate transactions. Additionally, DBS and OGP contributed to a MAS-led industry white paper published earlier today and explores the idea of purpose-bound money and the potential advantages of programmable digital currency via several use cases.