IBM and Australian Government Agree To $740 Million Blockchain Deal

America based technology giant IBM has secured a blockchain agreement worth $740 million with the Australian government.

According to the details of the agreement, IBM will help the Australian government in the field of automation and blockchain technology for the next five years. The tech titan will help Australia to transition and become a paperless, digital economy.

IBM making strides in blockchain technology

IBM has been at the forefront of adopting blockchain technology. It is working on a number of projects with both private companies and governments.

The agreement with the Australian government will further cement its stature as a growing leader in this new technology.

IBM will work in close coordination with different ministries and charter a plan to make effective use of blockchain technology as per their requirements. The aim of the deal is to enable Australia to be included in the top three digital governments by 2025.

David La Rose, Managing Director of IBM Australia and New Zealand said,

“We look forward to helping the Australian Government to re-define the digital experience for the benefit of all Australians. This agreement is a testament to our forty-year partnership with the Australian Government. It shows trust and belief in our ability to transform and provide world-leading capabilities, leveraging our investments locally in AI, blockchain, quantum and cloud.”

Past IBM projects in Australia

The Australian government has also allocated a budget of $530,000 for research in the field of distributed ledger technology.

Blockchain technology will also help in building a secure database of biometric and other details of Australians. This is not the first time that IBM will work with the Australian government. It had been tasked to operate an online data collection portal two years ago, but it ended in failure and IBM had to pay $30 million as compensation to the government.

The blockchain is a public ledger containing details of all transactions in the network. It is secure and immutable. Hence the Australian government wants to employ blockchain technology for its projects. It is yet to be announced if IBM will restart work on the data collection portal and store all data on a public blockchain or a closed database.

Harriett Green, Asia Pacific Head for IBM told Bloomberg in an interview that blockchain technology will help in securing data of Australian citizens. She indicated that IBM was indeed going to use blockchain technology because data could be encrypted and stored.

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