Standards Australia, the country’s non-government, not-for-profit organisation, on 02 March 2017 released its Roadmap for Blockchain Standards Report, outlining how the organisation will work to deliver measures to support the privacy, security and interoperability of blockchain systems.

The report is part of a wider initiative led by Standards Australia to develop international blockchain standards, with the support of the Australian Government. Standards Australia is the secretariat for the International Organization for Standardization’s (ISO) technical committee which is developing new international standards on blockchain.

FinTech Australia, a national association for the Australian fintech startup community, said that Australian fintech companies were in the box seat to take advantage of blockchain technology, following the release of the important standards roadmap.

FinTech Australia CEO Danielle Szetho said the release of the report was a welcome development which helped put Australia’s fintech industry in a strong global position to take advantage of this technology.

“Blockchain has almost unlimited potential to transform financial services, particularly in regard to international transactions,” Szetho said.

“Australia’s rapidly-growing fintech industry is at the centre of the global game to take advantage of this new technology.

"FinTech Australia’s blockchain members had strong input into the development of this roadmap and we intend to work closely with Standards Australia on an ongoing basis to ensure any new standards are fintech-friendly and also serve the greater good.

“Already our members are developing exciting blockchain products, including to facilitate agricultural commodities, international payments and labour hire.

“For instance, FinTech Australia member AgriDigital in December 2016 successfully executed the world’s first-ever live settlement of a physical commodity on a blockchain between a grower and a buyer.

“The release of this roadmap is expected to spark further innovation among the many Australian companies ready to take advantage of blockchain technology.”

The initiative is being backed by the Australian government. The Australian Treasurer, the Hon. Scott Morrison MP, revealed that the government has announced a support of $350,000 over a period of four years for the development of blockchain standards.

“Australia’s leadership in developing blockchain standards promotes our position as a global centre for distributed ledger technologies. That is why the Turnbull Government announced in the Mid-Year Economic and Financial Outlook 2016-17 that it would provide $350,000 to Standards Australia over four years to support the blockchain standards initiative”, Morrison said. “The Government realises that distributed ledger technology has applications across the economy and specifically offers the potential for greater competition in the payments system which could bring cheaper and more efficient transactions to help businesses cut costs and expand.”

Representatives from 30 of the world’s leading economies will converge in Sydney for the inaugural ISO blockchain standards meeting in April 2017. For a more detailed explanation of the Standards Australia announcement, FinTech Australia recommends the analysis by King &Wood Mallesons.