Blockchain Spending China Will Surpass $2 Billion In Two Years

Market intelligence firm IDC published a report according to whom it is expected for the blockchain spending in China to grow dramatically in the next three years and to exceed $2 billion by the end of 2023.

The report of the market intelligence firm that we have in our blockchain news today, it was published soon after Xi Jinping, the Chinese President, endorsed the distributed ledger technology (DLT). China cannot stay separate from the blockchain revolution, remarked the President. The Blockchain Spending on blockchain projects in China will note an annual compound growth rate of 65.7% from 2018 to 2023, by IDC estimation.

It is in the banking sector that the majority of blockchain spending is focused this year. Funds for DLT projects are attracted also in the manufacturing, professional services, and retail industries, in other countries.

It was stressed how much important role the blockchain plays in the context of contemporary technological progress and industrial advancement, last month during a study session of the Political Bureau of the Communist Party of China (CPC) Central Committee, by the most important officials in the country. Citing the technological benefits of the DLT, the communist party leaders called for an acceleration of its adoption.

According to the researcher at the IDC Xue Yu, the official recognition of blockchain technology will further push the adoption and will drive spending growth in the sector. This morning, Bitcoin made headlines again in Xinhua which is a publication backed by the Chinese government with the title ‘’Bitcoin: The First Successful Application of Blockchain Technology’’ where you cannot really read a lot of praising for the leading cryptocurrency.

The Chinese government is not the only one to endorse the DLT and to spend on blockchain-related projects since Russia also reported that their Ministry of Finance would allocate more than $5.5 million for further development of the blockchain technology. This plan is a part of the federal draft for the 2020-2022 budget. According to the draft, the goal is to support solutions and trials in order to develop the ‘’state data resources using the DLT and introduce methods and technologies for processing and storing information.’’

The government will allocate further 199 million rubles in 2020 and about 150 million in 2021 for further blockchain development.