The Australian Federal Treasury (AFT) will team up with a research unit from the Commonwealth Scientific and Industrial Research Organisation (CSIRO) in an effort to better understand the innovation of bitcoin.

The AFT will make blockchain technology a learning priority by embarking on a joint research endeavour with CSIRO. The study will focus on the possible benefits of blockchain for the Australian economy, as well as seeking to develop practical use cases for its use.

The research will be conducted through Data61, a research specific unit of CSIRO. Data61 strategy scientist, Stefan Hajkowicz is condiment that an increased focus on the uses of blockchain will be conducive to developing Australia’s technological capabilities.

“Blockchain is certainly an example of a technology that has the potential to disrupt or change the way not only financial services transactions are carried out, but also those across virtually any other sector, including government,” he said.

Chief executive Adrian Turner hoped than the powerful and advanced algorithmic capabilities in blockchain technology would help increase Australia’s involvement in innovative measures.

“This study will provide the information we need to properly consider both the opportunities and the challenges posed by blockchain,” he said.

The study reaffirms the government’s post-Budget commitment to building an innovative culture and will follow on from the success bitcoin has already found in the Australian business.