The Australian government is doling out millions in grants for two blockchain-based pilot projects to investigate the capability of blockchain in supply chain solutions.
Prime Minister Scott Morrison’s government says the research by the companies 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.tech.
Through its Blockchain Pilot Grants program, the government is hoping the companies will increase the productivity and competitiveness of Australia’s Critical Minerals and Food and Beverage sectors.
Everledger has received AU$3 million (US$2.24 million) to investigate blockchain’s use in digital certification for critical minerals throughout the extractions and movement phases.
Morisson’s government is hoping Everledger’s pursuit will aid companies in the mining sector to adhere to compliance regulations while increasing demand for Australian products on the global stage.
Covergence.tech has received AU$2.66 million (US$2 million) to help automate reporting processes under a commodity-based tax, known as Excise, on goods and services including alcohol.
Convergence’s pursuit will aim to provide companies in the sector with a means to reduce compliance costs associated with the creation, storage, and transportation of their products, per the release.
Minister for Industry, Science, and Technology Christian Porter said the grants will show the potential for blockchain to assist businesses in cutting costs and red tape throughout the supply chain process.
“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,” said Porter.
The blockchain grants coincide with the country’s National Blockchain Roadmap, a 52-page roadmap focusing on regulation and standards, skills, capability, and innovation, and international investment and collaboration.