IBM Wins $1 Billion Contract to Develop Blockchain for Australia Govt.

09.07.2018

The American computer giant IBM has signed a contract with the Australian government to develop blockchain and other digital technologies.

The contract, valued at 1 billion Australian dollars (or 740 million US dollars), is concluded for a period of five years and aims to achieve the goal set by Australia before 2025 to enter the "three leading digital countries" list of the world through investments in research of blockchain, quantum computers and artificial intelligence.

“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,” said David La Rose, managing director of IBM Australia & New Zealand. “We look forward to helping the Australian Government to re-define the digital experience for the benefit of all Australians.”

IBM already has existing agreements with four federal agencies of the country, and this new contract, initiated by the Agency for Digital Transformations (DTA), concluded before June 2023, should promote the development of relations between the public and private sectors, as well as other government units.

It is not yet clear to what extent the newly concluded partnership will replace the old agreements, and IBM is sober about the forecasts of possible profits. On the other hand, it is the largest contract initiated by the Australian government, a fact that the firm has been quick to tout in public statements.

IBM Corporation is one of the largest participants in the development of corporate blockchain. Last month, IBM-powered blockchain platform we.trade hosted live trades between four major European financial institutions, including Deutsche Bank and HSBC.

IBM is also developing a public blockchain. Last year, the company entered into a contract with the “stellar” start-up to use the XLM network as the basis for international bank payments in developing countries.

Recently, IBM has entered into a partnership agreement with Veridium Labs to issue a cryptocurrency token on the Stellar network. The “verde” token is backed by carbon credits, which will help finance the cultivation of a 250-square mile patch of rainforest in Indonesia.

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