Singapore Tests Flat Tokenization With Smart Contract Functionality

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Last Updated on October 31, 2022 by Bitfinsider

A software team within the Singaporean government called Open Government Products and the financial services company DBS, based in Singapore, are collaborating to create a live pilot for the issue of purpose-bound money-based vouchers.

An email from DBS revealed that the vouchers are, interestingly, issued using tokenized Singapore dollars on a blockchain.

The Monetary Authority of Singapore’s Project Orchid, which intends to create a programmable digital Singapore dollar, includes the pilot. Digital Singapore dollars will be printed by DBS, while smart contract functionality will be made available via Open Government Products.

According to the email, this initiative aims to give retail storefronts the ability to take advantage of rapid settlements, payments, and collections through client use of the vouchers, ostensibly enhancing cash flow and saving time on administrative backend work.

DBS cites quick payments and eliminating backend administration as reasons why the trial could help the Community Development Council voucher program mitigate the negative consequences of growing inflation and rising cost of living.

The live test will begin modestly, with six retailers and 1,000 carefully chosen customers.

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