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Executives See ‘Compelling Business Case’ for Blockchain - Survey

Published 05/16/2018, 05:26 AM
Updated 05/16/2018, 05:30 AM
 Executives See ‘Compelling Business Case’ for Blockchain - Survey

A survey by professional services major Deloitte among more than 1,000 executives at large corporations in seven countries has found that 74% of respondents see a "compelling business case" for the use of blockchain. According to Deloitte, pragmatism is the new mindset among global executives with excellent to expert knowledge of the technology.

Deloitte Consulting principal Linda Pawczuk, who leads the group’s US financial services blockchain operation, commented:

"We are at an inflection point — momentum is shifting from a focus on 'blockchain tourism' and exploring the technology's potential to building practical business applications. I regard these blockchain-savvy executives' views as a leading indicator. As more organizations put their resources behind this emerging technology, we expect blockchain to gain significant traction as its potential for greater efficiency, support for new business models and revenue sources, and enhanced security are demonstrated in real-world situations."

Among those polled, 34% revealed that their companies had already initiated some blockchain system, while 41% said their organizations planned to launch a blockchain solution within a year. In addition, almost 40% stated their companies would spend $5 million or more on blockchain solutions in the year ahead.

The findings indicate that the blockchain space will see significant commercial application of the technology next year, at least among organization already convinced of its potential. Still, 22% of respondents globally and 30% of US executives see no compelling application to warrant the use of blockchain.

Blockchain to reach mainstream adoption

Other key findings include 84% of those polled expressing the belief that blockchain will reach mainstream adoption and is broadly scalable, while 59% agreed the technology can revolutionize and disrupt their industries and the overall economy.

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Despite the significant interest in blockchain, at least 39% declared the technology overhyped. The figure was 44% for US executives, up from 34% in a similar survey in 2016.

Pawczuk stated:

"While this may seem like blockchain is trending in the wrong direction, we believe this change in attitude is more reflective of the shift toward the pragmatists in the blockchain community.”

Her views were echoed by Deloitte Consulting principal Joe Guastella, who said:

"We're still early in blockchain's development, so fits and starts in its maturation are not surprising. In financial services, the technology has already inspired the industry to re-examine processes and functions that have been static for decades. We are broadly seeing applications in production – as well as developing them ourselves for clients – and we believe this momentum will continue."

Financial executives to invest in blockchain

A joint independent survey by the Financial Executives Research Foundation (FERF) and Deloitte released last week showed that 30% of financial executives are planning to invest in blockchain products within a year and a half despite not understanding completely the potential of the technology.

The study, titled “Blockchain for Financial Leaders: Opportunity vs. Reality,” also had 64% of those polled saying their decision to explore opportunities in the blockchain space would not be hampered by any unfavorable news on Bitcoin or price swings of the digital currency.


This article appeared first on Cryptovest

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