• 6 hours Bitcoin Lives Up To Its Safe Haven Status In A Big Way
  • 9 hours 14 Million People Will Lose Unemployment Benefits On December 31st
  • 2 days Why 12 Million American Millionaires Isn’t Good News
  • 3 days Big Oil Is Paying The Price For Investing In Renewables
  • 4 days The Banking Industry’s $35 Billion Gravy Train Could Disappear
  • 5 days Did Amazon Just Democratize Prescription Drugs?
  • 6 days The Private Space Race Just Got Very Real
  • 8 days Short Sellers Are Willing Big In This Turbulent Market
  • 9 days SpaceX Gets Go-Ahead To Send Humans Into Space
  • 10 days Saudi Arabia Lost $27 Billion In Oil Crash
  • 11 days China’s Big Tech Takes A Hit As Regulators Crack Down
  • 12 days Black Friday Could Be Retailers’ Only Hope
  • 13 days Why You Should Not Dump Your Stay At Home Stocks Just Yet
  • 14 days The Real Reason Why Uber And Lyft Stocks Have Soared Nearly 50%
  • 16 days Bitcoin Heads Towards $16,000 And No One’s Cashing In
  • 17 days Elon Musk’s $250 Tesla Tequila Is Already Sold Out
  • 18 days Will The San Francisco Wealth Tax Spark An Exodus Of The Rich?
  • 19 days The Fin-Tech IPO Of The Century Just Got Crushed
  • 20 days UK Bookies Report Largest-Ever Political Bet Ahead Of Election Results
  • 21 days Better Safe Than Sorry: 5 Alternative Investment Plays
COVID-19 Could Be The End Of U.S. Coal

COVID-19 Could Be The End Of U.S. Coal

The fast-spreading coronavirus pandemic may…

China Approves Massive Coal Company Merger

China Approves Massive Coal Company Merger

China has approved the merger of two…

Damir Kaletovic

Damir Kaletovic

Writer, Safehaven.com

Damir Kaletovic is an award-winning investigative journalist, documentary filmmaker and expert on Southeastern Europe whose work appears on behalf of Safehaven.com.

Contact Author

  1. Home
  2. Commodities
  3. Energy

Banks Spent $1.7B On Blockchain Last Year

Blockchain

The financial services industry may not be keen on cryptocurrency, but it’s definitively embracing blockchain as a whole, with a new study showing that the sector spent $1.7 billion on the technology just last year, and it’s only getting bigger.   

This is where blockchain gets commercial.

According to U.S.-based Greenwich Associates market intelligence, budgetary spending for blockchain in the financial sector rose by an amazing 67 percent in 2017 to reach a spending level of $1.7 billion for the year.

It also showed that one in 10 of the 200 market participants interviewed had blockchain budgets of over $10 million. And of those institutions, 14 percent said they weren’t just spending on development; they have already deployed blockchain solutions.

Within the next two years, live blockchain products will be the norm, with the study showing that 75 percent of those projects in development will have been realized.

Last year, banks increased the number of dedicated staff for blockchain development, making it a job niche in and of itself. The study suggests that the average big bank now has close to 20 employees focused on this alone.

There have been other hints, as well, that blockchain has started down the path of true commercialization. And the financial services industry isn’t the only one with deep blockchain pockets—not even close.

IBM is in the middle of a revival that is underpinned by blockchain, its new savior. The tech giant saw its revenue dip for 22 quarters to December, and its recovery is now about getting in front of this new technology. It’s doing exactly that. Related: Will Russia Profit From The World Cup?

Last month, IBM announced plans to hire some 1,800 people—mostly blockchain researchers—at a new branch in France. It’s also launching blockchain pilot projects in everything from finance, health care, supply chain and logistics to the environment and humanitarian causes.

In fact, it’s become a blockchain leader in these early days, with a recent survey showing that 43 percent of enterprises rank IBM first in this area.

And blockchain hit a major milestone in May when a big player in the financial services sector made history.

British HSBC bank became famous for making the world’s first commercially viable trade finance transaction using blockchain. HSBC issued a letter of credit for Cargill using blockchain to facilitate the bulk shipment of soybeans from Argentina to Malaysia.

From here, it’s all downhill for blockchain even if it doesn’t happen overnight.

Related: London Stock Exchange To List First Blockchain Company

According to a recent blockchain trend report by Gartner, it will be slow but inevitable. Through 2022, around 10 percent of enterprises will have achieved some form of “radical transformation” through blockchain technology. By 2022, Gartner predicts, there will be at least one innovative business built on blockchain technology that will be worth $10 billion.

But by 2030, it’s all about blockchain: Gartner predicts that the business value added by blockchain will surge to more than $3.1 trillion.

(Click to enlarge)

Source: Gartner, via Zdnet

By Damir Kaletovic for Safehaven.com

More Top Reads From Oilprice.com:

Back to homepage

Leave a comment

Leave a comment