Two pilot blockchain-based projects will be funded by the Australian government. They will study the potential of blockchain technology in supply chains systems.
Prime Minister Scott Morrison’s government says the research will help ease regulatory compliance burdens, according to a press release on Monday.
The government has invested roughly AU$5.6 million (US$4.1 million) into blockchain provenance startup Everledger and tech consultancy Convergence
The government hopes that the Blockchain Pilot Grants program will help companies increase productivity and competition in Australia’s food and beverage, critical minerals, and food and drink sectors.
Everledger received AU$3million (US$2.2 Million) to study blockchain’s potential use in digital certification of critical minerals during extraction and transport phases.
Morrison’s government hopes Everledger’s pursuit of Morrison will help companies in the mining sector to comply with regulations and increase demand for Australian products worldwide.
Convergence. Tech received AU$2.66million (US$2,000,000) to automate reporting processes for commodity-based taxes, which is an excise and sales tax on goods and services.
According to the press release, Convergence aims to lower compliance costs for the creation, storage, and transportation of food and beverages products.
Christian Porter, Australia’s minister for science, technology, and industry, stated that the grants will demonstrate the potential of blockchain technology to help businesses cut costs and redundancy throughout the supply chain process.
Porter stated that “These two projects are also going to highlight the opportunities to improve Australia’s technical and regulatory environment for Blockchain, boost blockchain literacy, and support collaboration between Australian governments and the private sector, as well as the potential for Australia to adopt blockchain technology.”
These grants are in line with the country’s National Blockchain Roadmap (52-page document) that sets out a five-year strategy for how blockchain technology can help reduce compliance costs, improve the technology, and expand its use internationally.