A new report from the U.S based, data analysis firm, International Data Corporation (IDC) forecasts a 67% CAGR in China’s blockchain technology industry from 2018 to 2023.
60% CAGR in the Global Blockchain Industry
China’s affinity to blockchain is clear to see as the government, private sector and regulatory authorities all working towards mass adoption of the technology. President Xi’s remarks on blockchain earlier in October boosted the development of solutions on decentralized technologies and this trend is set to continue in the coming years, the report forecasts.
In August, IDC released the worldwide blockchain growth report citing a 60% compounded annual growth rate (CAGR) of spending in the global blockchain industry, taking it to $16 billion by 2023. The Chinese market is set to contribute to an eighth of the global growth rate with the recent positive news emerging from the country.
According to the report, the U.S remains the biggest spending economy on blockchain with a total value of $1.1 billion spent in 2019, Western Europe is the second biggest spender in the field ($661 million) followed by China at $304 million USD spent during the year.
Top Industries Using Blockchain Technology
The banking industry remains the biggest spending industry in blockchain technology in China in 2019. Other industries investing big on decentralized ledgers include discrete manufacturing, retail, professional services and process manufacturing.
China’s recent lift on the crypto mining ban, the launch of a sovereign digital currency and the ever growing trade war between the US and China points to a sunny future for blockchain in China.
Despite the general positivity on blockchain and bitcoin in China, there remains an ambiguous feeling on whether the platforms are really on track to give freedom to the people. Furthermore, the widespread narrative of crypto aiding criminal activities and the volatile nature of the industry raises widespread suspicions around crypto.
On Nov.10, the state newspaper, Xinhua published a bitter-sweet report on blockchain and bitcoin that leaves most investors confused on the overall direction the industry is going to take in the coming years. It deems bitcoin as the first successful application of blockchain, but also says that “most important uses of Bitcoin payments are black market transactions and ‘darknet’ transactions”.