The government of Austria is backing the new blockchain research that seeks to develop business applications of the nascent technology.

The new Research Institute for Cryptoeconomy will be based at the University of Vienna.

Over 500 people gathered at the center on December 5 during an event wherein the Austrian Federal Minister of Science, Research and Economy, Harald Mahrer, made an appearance.

“We are bringing together the expertise of the entire community, so that needs of our entrepreneurs can be incorporated into the agenda of the incoming administration.

“In Europe, Austria already has a leading role in the field of blockchain, having implemented an ambitious roadmap.

“Now we need to ensure that the next steps are taken and create sandboxes to promote real business applications.

“Otherwise the competitiveness of our business sector is impeded,” Mahrer told the people present.

In statements, the ministry remarked that it would be backing blockchain research projects through a €8 million research fund.

This is a project that will also be used to develop different kinds of digital services.

The public sector drive follows interest from various corners of Austria’s private sector, including Wien Energie, a huge energy supplier.

The government said that it would support regulatory amendments that enable uses of blockchain.

“It [blockchain] offers enormous possibilities for new business ideas,” Mahrer said in a report.

“Now it is essential to explore these possibilities without taboos in regulatory sandboxes.”