The Australian government has allocated A$6.9 million (US$5.3 million) to study the role blockchain technology can play in regulation. The funds will go to two pilots looking into reducing the cost of regulatory compliance through blockchain integration. According to a report by ZDNet, the government granted the money to the Department of Industry, Science, Energy, and Resources. As the department told the Senate, it will, in turn, allocate the money to two blockchain pilot projects. 

Departments will look if blockchain can reduce the cost of regulatory compliance.

The government-funded pilot projects will be seeking to prove that blockchain can reduce the cost of regulatory compliance. Tim Bradley, the general manager of the department’s Emerging Technologies and Adoption Division, remarked, “We’re developing the guidelines for those now, but, of the two pilots, one will be around the issue of critical minerals, and the other will be designed around food and beverage provenance.” The two pilots will demonstrate the feasibility of blockchain technology in the Australian public sector, Bradley added, stating, “It is designed to demonstrate the benefits that technology can bring and help bring along changes amongst regulatory culture.”

“Blockchain technology has made its biggest impact in the financial services industry.”

Blockchain technology has made its biggest impact in the financial services industry, Bradley opined. However, it’s extending to other sectors, both in the private and public sectors. These include traceability, provenance, and verification. He believes it’s time blockchain revolutionized the regulatory compliance sector. Bradley believes that the Australian government is doing a great job in integrating blockchain. One of the major initiatives is the Australian Public Sector Blockchain Network, a forum his department helped create. He described it as a space for the public sector to discuss how they can take advantage of blockchain technology in their day-to-day activities.