New IDC Government Insights Study: Blockchain Spending Could Increase 1,000% In The US Govt
Study Shows Blockchain Spending Could Increase 1,000% In The U.S. Government
The U.S. government could increase the spending in blockchain technology to $123.5 million by 2022. That would represent a 1,000% increase compared with the $10.7 million that it spent back in 2017. The information was released by IDC Government Insights on April 18.
US Government To Increase Blockchain Spending
Blockchain technology has been expanding all over the world. Companies and governments have been embracing it in order to improve different services and products. According to IDC, blockchain spending among states is expected to grow from $4.4 million in 2017 to $48 million in 2022, almost a 1,000% increase.
In 2022, civilian agencies at the federal level are expected to invest $80 million. This is four times more than in 2017, when the investment in DLT was $20 million. The Defense Department could also double its spending in blockchain from $20 million to $40 million in 2022.
IDC’s research director, Shawn McCarthy, commented:
“We believe asset management, identity management, and smart contracts will be the leading blockchain solutions for government. Early spending will focus on supply chain and asset management solutions, while spending in later years will expand to include more identity management and complex financial transactions.”
Moreover, the firm says that DLT is expected to become a technology for trade legislation. International commerce could be improved by the implementation of blockchain solutions to eliminate paperwork, bureaucracy, transaction times, and more.
Moreover, there will be investment in private and public blockchains as well. The intention is to combine aspects of these two models. At the same time, the Republican Minority Leader in the U.S. House of Representatives explained that blockchain technology could be implemented to improve overall transparency in the legislative process.