Global spending on blockchain solutions this year is expected to reach $4.1 billion, according to Yahoo Finance.
This rate represents a 50% increase compared to 2019, added Yahoo Finance.
Strong pace of spending
The International Data Corporation said in its latest report that spending on blockchain will continue at a strong pace. Expectations are for it to reach $17.9 billion in 2024.
James Wester, director of research at Worldwide Blockchain Strategies, said, “The issues facing the global economy in light of the outbreak of the corona pandemic, and the efforts to contain the epidemic, have led to a widespread impact on all industries and markets, and have also caused a reassessment of economic processes.”
“This has led to an acceleration of interest and investment in digital transformation, which includes blockchain and digital data distribution,” he added.
According to the report, a quarter of global blockchain spending comes from the banking industry.
This includes prominent spending operations such as cross-border payments, financial settlements, financial trade, commercial settlements, and financial transactions.
The banking industry is also likely to help boost the strong pace of investment in blockchain. The technology could even see a growth rate of 45.3% over a period of five years.
“The corona pandemic has proven to be a catalyst for the adoption of many emerging technologies, and blockchain technology is no exception,” noted Stacie Soho, director of research at Customer Insights & Analysis.
“No doubt, the world will continue to learn from activities related to the digital dollar, and companies will implement actual initiatives using blockchain technology to solve the real crises that the world faces,” she added.
From a technical perspective, meanwhile, IT services and business services combined will account for nearly 70% of total blockchain spending.
During the forecast period, IT services would receive slightly more investment than other economic activities, according the report.