According to state-run publications, Xinhua recently reported that by the year 2023, we could see Chinese blockchain expenditure reach $2 billion. The company applied an estimated compound annual growth rate of 65.7% from 2018 to 2023 to derive this amount.
Blockchain has practically limitless applications away from cryptocurrency, a point not missed by the Communist Party of China Central Committee Political Bureau. In a study session held in October, the importance of blockchain technology and its role as a driving force for technological innovation and transformation was explored, urging efforts to increase research and development in the sector.
International Data Corporation (IDC), an American Intelligence Firm, conducted a study, in which it discovered that a more substantial portion of China’s blockchain expenditure would focus on remittance and the banking sector in coming years. Notable industries that would also see an increase in expenditure include manufacturing, retail, professional and process manufacturing.
According to the report, the financial sector, including banking, securities, investment and insurance services, are forecasted to invest more than $1.1 billion out of the total global blockchain spending. In turn, manufacturing and distribution services are predicted to see spending on blockchain amount to $653 million and $642 million respectively by the end of this year. A stand-out use case of cross border settlements and trade finance are expected to receive investments totalling $738 million, the report notes. The potential application of Dragon Blockchain Technology for cross-border transactions is a mouth-watering proposition. The Dragon Social Wallet offers extremely-low transaction fees and provides an easy route into this market segment for traditional businesses who seek expansion.
The research conducted by IDC suggests that the government recognises this growth and publishing such news on official reports will further increase application, adoption and confidence in the space as well as seeing increased spending in the respective sectors.
As China continues its digital revolution, there is sure to be much more exciting news that we will be covering, be sure to stay tuned to the Dragon Blog for the latest in blockchain and cryptocurrency news from around the world!
Dragon assumes no responsibility for the figures used in this article which are from various sources. Any content on this site should not be relied upon as advice or construed as providing recommendations of any kind. You are advised to carry out your own research.