In a blog post today, DBS announced a collaboration with Open Government Products (OGP). According to the announcement, the partnership will initiate a “live pilot where purposes bound money-based vouchers (PBM vouchers) are issued using tokenized SDG.” The tokenized SDG will be used to facilitate physical transactions with handpicked merchants.
The collaboration comes from Project Orchid by the Monetary Authority of Singapore (MAS). As revealed, the MAS is aiming to enhance the technology infrastructure and technical requirements to aid programmable digital Singapore dollar (DSGD). Through the use of Blockchain, PMB vouchers will come into use through DSGD administered by DBS. OGP supported smart contracts features will as well come with the initiative. Therefore, the innovation will aid issuers to design, distribute and use the voucher to the targeted audience.
Furthermore, the initiative is useful for Startups and retail outlets. The project will offer them the privilege to make payment instantly through their banks as customers uses the digital voucher. Consequently, aiding these businesses to increase their cashflow while ensuring they cut administrative backend tasks. So, the project intends to change the existing narrative of the delay in how merchants get access to the money sent into their accounts. Before now, it usually takes around 72 hours before they get access to incoming funds. With the project by DBS, merchants will now get the money instantly.
Reactions to the project by DBS
Meanwhile, DBS hopes that the live pilot with OGP will be useful in different cases, most especially in the battle against inflation and cost of living. The Singapore Country head of DBS, Shee Tse Koon has reacted to the initiative. Shee Tse Koon said “Many businesses we speak to, of all sizes and even non-governmental organisations (NGOs), want to urgently realise productivity gains from digitalisation but are unsure of how to do so. The live pilot demonstrates the feasibility of programmable money to foster an even more efficient, trustworthy and robust payment system, especially for time and resource starved businesses.”
Initially, the live pilot will include about 1,000 customers and six merchants that include outlets belonging to F&B. The announcement from DBS indicates that pilot program will start with the F&B industry in Singapore. On the long run, the vouchers will be available to over 28,000 coffee shops, hawker centers and restaurants in the country.
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