Blockchain Technology Is Set To Grow the Global GDP by $1.76 Trillion In the Next Decade: PwC Report
- China set to benefit the most from blockchain technology growth in the next decade with a protracted $440 billion boost in its GDP during this period.
- This represents 25% of the total protracted global GDP boost from the innovative technology – set at $1.76 trillion by 2030.
A research report from a ‘big 4' accounting firm, PricewaterhouseCoopers (PwC), “Time for Trust,” explores blockchain technology's global socio-economic impact in the next decade. Targeting 2025 as the tipping point for the technology. If adopted at scale, PwC experts and researchers see a $1.76 trillion impact from the technology by 2030. This represents 1.4% of the total gross domestic product (GDP) of the world.
The report focuses on blockchain's practical use in five key areas – provenance, payments and financial instruments, identity, contracts, dispute resolution, customer engagement – and how they deliver value in building transparent and efficient solutions across all industries.
According to the report, Asia is set to witness blockchain technology's greatest impact, China leading the growth with a $440.4 billion projection. Japan and India expected to witness a $72.3 billion and $62.2 billion increase, respectively.
The United States is expected to witness a $407.2 billion increase in GDP from blockchain innovation growth in the next decade.
PwC report further states blockchain’s role in enhancing transparency and traceability as the sector with the most growth potential – projected to grow by $$961.6 billion by 2030. Anthony Bruce, Partner, and Pharmaceutical and Life Sciences Leader, PwC U.K, praised the potential of blockchain innovation in providence and traceability in the healthcare industry, stating,
“For healthcare organizations, blockchain can ensure patient safety is at the heart of the pharmaceutical supply chain. It has the potential to give patients confidence in the authenticity and origin of drugs.”
Payments and securitization of wallets are also picking up the pace and is expected to grow by $433.2 billion in the next decade. The U.S is expected to lead global growth in this period and is expected to experience a $136.3 billion GDP growth from blockchain-based payment systems, with China coming in a close second at $104.6 billion.
“Blockchain has the potential to cut costs, speed up transactions and promote greater financial inclusion by streamlining cross-border and remittance payments,” Lucy Gazmararian, Crypto, and FinTech Advisory, PwC Hong Kong said.
“These powerful innovations will transform the payments infrastructure.”