The Australian government is looking to use blockchain technology to efficiently deliver welfare to its population. Currently, the details are still being ironed out and implementation could take place around mid-2019.

Australia’s Department of Transformation Agency was recently given AU$700,000 to find ways in integrating this blockchain-based welfare. Acting chief operating officer Randall Brugeaud also said they’re considering the use of machine learning and artificial intelligence to achieve results, but blockchain tech is their top candidate for the job.

Among the primary steps to realize this plan is to create a digital identity for the population. In March, it was proposed that it should be associated with tax file numbers (TFN). While users will be able to complete their TFN application, the document still needs to be written down and brought with identity papers in order to be finalized. It’s estimated that there are 750,000 applicants for the TFN on a yearly basis.

The use of blockchain for welfare is practical idea since the technology is quite adept at tracking, transparency, and speed of transactions – all of which are crucial to efficiently cater hundreds of thousands of people. Of course, the digital identity could also be used beyond welfare. And that’s what the Australian government is exactly doing.

Government services, business registration, grant management, student services and a host of other possibilities can be accomplished digitally, decreasing months of processing time into minutes. The U.K. is also another government that aims to use blockchain for welfare distribution.

And while distribution is indeed essential, how individuals spend welfare is also important. With digital identity able to track what recipients are buying without revealing their personal identity, agencies can ensure that those in welfare are spending government aid on essentials and not on frivolous purchases. Those caught doing so can be penalized by decreasing the amount they receive and shoulder other fines.

Welfare recipients can also take advantage and search for online deals that can lower the amount of purchase, bypassing the need to possess credit. Adoption of such currency isn’t going to be a problem since a government can simply require most, if not all, businesses to recognize it as a valid form of payment.