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Blockchain investments fell 63% due to the pandemic

August 14, 2020

Professional services company KPMG released a report predicting this Blockchain will be one of the five emerging technology sectors in which companies will invest the most over the next 12 months.

The report, entitled Enterprise Reboot, was produced by KPMG International and HFS Research. Based on a survey of 900 executives from organizations on the Forbes Global 2000 list of the largest publicly traded companies with annual sales of more than $ 1 billion.

While blockchain investments were found to have declined 63% due to the pandemic, the report predicts it The sector, along with Artificial Intelligence (AI), cloud, 5G and process automation technologies, will see a surge in investment as large companies seek a competitive advantage in the post-COVID business climate. 19th

Technology spending has been hit hard

Blockchain investments fell 63% due to the pandemicBlockchain investments fell 63% due to the pandemic

KPMG found that Global 2000 companies were quick to cut funding for new technology as the coronavirus quarantine and recessions took effect, forcing companies to prioritize survival over everyone else. Considerations. About 40% of executives said they decided to stop investing fully in new technology initiatives.

The report found that Blockchain funding has been hardest hit by the quarantine caused by COVID-19. Distributed Ledger Technologies (DLT) slipped from the largest emerging technology sector to the second smallest at $ 6.5 million with a weighted average investment of $ 18 million.

Executives reported that Blockchain investments declined 63% on average, which is the largest average percentage funding loss among emerging technology sectors.

However, the report found that 59% of executives believe that COVID-19 has given impetus to accelerate digitization initiatives.

Competitiveness

Executives report that Blockchain investments provide improvements in “competitive positioning” and improve efficiency and governance processes and will form the “basis for modernizing the infrastructure”.

The report found that 65% of executives believe that the combined use of new technologies generates higher returns than the isolated investment in a single technology.

However, Steve Hill, the global innovation leader at KPMG, He said trust issues continue to hamper distributed ledger technologies.

“”The visible gaps in trust for emerging technologies like AI, blockchain and IoT [internet de las cosas] remain significant barriers to adoption “said.

“I believe companies need to gain the right confidence to successfully deploy new technologies in order to recover from the crisis. […] It is these organizations that are likely to be navigating the recovery in their best shape. “

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