Australian government offers $5.6 Million AUD grant to two blockchain projects

  • The funding aims to explore the use of blockchain tech to bring supply chains solutions for Australia’s Critical Minerals and Food and Beverage sectors.
  • It will also help to substantially reduce compliance burdens associated with the process.

In a major announcement on Monday, July 13, the Australian government announced an AUD $5.6 million grant to two blockchain tech platforms that support supply chain solutions. The investment has happened through the country’s Blockchain Pilot Grants program.

The recipients of this funding are Everledger (QLC) and Convergence.tech (VIC). These two blockchain-based pilots will investigate the application of blockchain in supply chain solutions. This project specifically focuses on enhancing the productivity and competitiveness of Australia’s Critical Minerals and Food and Beverage sectors.

Besides, the Scott Morrison government stated that the research by these companies will help to ease regulatory compliance burdens. It will also fuel Australia’s adoption of blockchain technology while assisting businesses to solve real-world problems. Speaking about this project, Australia’s Minister for Industry, Science and Technology Christian Porter said:

The Blockchain Pilot Grants will demonstrate the potential for blockchain to help businesses to save money and cut red tape by improving processes such as tracking products throughout the supply chain and transferring customer information.

These two successful projects will also highlight opportunities to improve the technical and regulatory environment for blockchain in Australia, bolster blockchain literacy and support collaboration between Australian governments, the private sector and blockchain companies.

The disbursement of funds through blockchain pilot grants

Out of the total funding, Everledger (QLD) will receive a net of AUD $3.0 million to investigate the use of blockchain tech for digital certification of critical minerals throughout the extraction and movement phases. Thus, all companies in this space will maintain adherence to compliance regulations. Simultaneously, it will boost the demand for Australian products in the international market.

On the other hand, Convergence.tech (VIC) receives the remaining AUD $2,663,000 in the grant. The platform will leverage the blockchain tech to automate key reporting processes under the Excise system. Thus, companies operating in this sector will reduce compliance costs linked to the creation, storage and transportation of their products.

The latest funding comes under the Australian Government’s Digital Business package, announced in Federal Budget 2020-2021. Besides, it will directly align with the Government’s National Blockchain Roadmap announced last year in February 2020.

“The Blockchain Pilot Grants builds on the National Blockchain Roadmap which ensures Australia is well-positioned to take advantage of the opportunities this technology can enable,” said Porter.

This move from the Australian government shows its keenness to explore the merging technology. While the government is initiating measures to foster blockchain development, the citizens don’t have many friendly views on crypto-assets.

A recent survey shows ~75% of Australians think bitcoin is a bubble. On the other hand, a vast majority of Australians also think BTC to be a speculative asset.

Read More: Nearly 75% of Australians think Bitcoin is a bubble that will eventually burst- Research

About Author

Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fictions novels and sometimes explores his culinary skills.

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