Financial Service Providers Spend $1.7bn on Blockchain Per Year

Fintechist Blockchain Spending

Blockchain technology remains of keen interest to the financial sector. So much even that the entire financial services industry is pouring money into this technology. A new study estimates $1.7bn is spent on blockchain every single year. That is quite a staggering amount, considering there are still very few working solutions on the market today.

Revolutionizing the world of finance will not be all that easy by any means. It requires innovative technology and a complete overhaul of the existing technology. This is where the blockchain comes into the picture in the years to come. Various companies are making progress in this regard, albeit there is room for improvements. Developing the necessary tools to succeed will require a lot of money and effort.

Blockchain Remains of Great Interest

As such, the financial services industry is fawning over blockchain and its potential. So much even that it has become a buzzword which kills conversations. On the other side of the spectrum, a whopping $1.7bn is spent on blockchain development every single year. It’s hard to argue with such numbers, albeit there is no DLT infrastructure to speak of. The Dutch central bank has made it clear they see no immediate future for this technology.

Greenwich Associates Market Structure and Technology VP Richard Johnson comments:

“More than half the executives we interviewed told us that implementing DLT was harder than they expected. Nevertheless, more than three-quarters of projects currently under development are expected to be live within two years.”

One interesting aspect is how blockchain budgets have increased by 67% in 2017. That in itself is somewhat surprising, given the lack of existing solutions based on this technology. Despite DLT being a top focus for financial services firms, it is evident things will need to change soon. There is potential waiting to be unlocked, but it will prove difficult to do so moving forward. Even so, it is expected things will only improve from here on out in one way or another

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