RMIT to Reorganize Blockchain Hub Amid Resource Constraints, Shifting Focus to Teaching

The Royal Melbourne Institute of Technology (RMIT) is set to significantly reduce the role of its Blockchain Innovation Hub starting in 2025, shifting it from a dedicated research center to a more informal research group under the university’s finance school. This move comes despite a booming cryptocurrency market, including Bitcoin’s recent surge to over $100,000, which has reignited interest in blockchain technology.

RMIT Restructures Blockchain Innovation Hub

In an email sent to staff on December 12, RMIT’s Deputy Vice-Chancellor of Business, Colin Picker, explained that the university is focusing on efficiency and carefully selecting areas for resource allocation. As a result, the Blockchain Hub, established in 2017 as the first social science research center dedicated to blockchain, will no longer operate as a standalone entity. Instead, it will transition to a research group within the finance school, with faculty expected to balance research with teaching duties.

According to Picker, the new model will support student learning while still allowing research on blockchain to continue. However, this restructuring has left many within the Blockchain Hub feeling dissatisfied and uncertain about the future of their work.

Internal Response and Staff Concerns

The news of the Hub’s restructuring took staff by surprise, with many expressing confusion and frustration. Staff members, who have limited teaching experience, will now be required to spend nearly half of their time in the classroom, despite the Hub’s previous focus on blockchain research. The restructuring also signals a shift away from dedicated blockchain research at RMIT, as the new group setup is expected to be less formal and less focused on specific areas of research.

A source close to the situation indicated that this change could lead to a gradual decline in blockchain-related research at the university. While most of the Hub's staff are experienced academics, many of them are likely to shift away from blockchain research as teaching becomes their primary responsibility.

The Blockchain Hub has faced challenges since its inception in 2017, with some observers noting a decline in research quality over the years and difficulty securing funding to sustain its operations. Staff had previously been told by Hub co-director Jason Potts that being "industry-engaged and entrepreneurial" was prioritized over publishing research in top-tier journals, which is often essential for attracting research funding.

Timing Amid Crypto Market Rally

The timing of this announcement is particularly noteworthy, given the recent crypto market rally. Bitcoin’s price reached a historic high of over $100,000 on December 5, boosting optimism within the broader cryptocurrency and blockchain space. Despite this surge, the university has chosen to reduce its focus on blockchain research, raising questions about its commitment to the future of the technology.

The decision also comes in the context of a changing political climate in both the United States and Australia, where political figures are increasingly voicing support for the cryptocurrency industry. In the U.S., President-elect Donald Trump has pledged to back the crypto sector, and in Australia, some members of the Liberal Party are calling for more support for local blockchain and cryptocurrency initiatives.

The Future of Blockchain Research at RMIT

Although the Blockchain Hub will continue to operate in some capacity, its role as a leader in blockchain research at RMIT appears to be waning. Staff members are now grappling with the reality of balancing teaching responsibilities with their research, potentially at the expense of deepening their blockchain expertise. As the crypto market and political landscape evolve, it remains to be seen how RMIT will navigate this transition and whether it will maintain a strong position in the rapidly growing field of blockchain technology.

This shift at RMIT reflects broader challenges faced by academic institutions trying to balance cutting-edge research with financial sustainability, particularly in a rapidly evolving and volatile sector like blockchain.