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Blockchain: lots of hype but little delivery

Categories : Cash ensures competition among payment instruments, Cash is the most widely used payment instrument
July 22, 2019
Published in : Blockchain, Cash substitution, Central Bank, Cryptocurrency
Banks, fintechs and payment solution providers have injected billions of dollars into blockchain based-projects, but according to a new report from the World Economic Forum and Accenture few projects have actually delivered the expected results.

The report is based on a worldwide survey of 550 individuals across 13 industries and an analysis of 79 blockchain projects.

Global spending on blockchain projects is forecast to reach  $2.9 billion in 2019,  and $12.4 billion in 2022. In April, a World Economic Forum report showed that over 40 central banks are researching distributed ledger technology for a variety of use-cases.

Cryptocurrencies are perhaps the most widely discussed blockchain-based solution. Blockchain is also at the core of the recent Libra initiative.

Survey respondents expected a 24% return on investment on average on their early blockchain projects, but realized only a 10% return and 59% said they had little confidence the projects would generate a positive return on investment. Furthermore, 42% of respondents expected a noticeable or significant brand improvement from simply announcing a blockchain project, with that total jumping to 87% upon delivering a blockchain project.

Reuters reviewed 33 blockchain projects in the banking and financial services industries, announced over the past four years and also concludes the technology has yet to deliver on its promise.

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