Blockchain Can Boost Global Economy By 1.7 Trillion Dollars
Blockchain technology stands to boost the global economy by $1.7 trillion in the next decade with Asia seeing the most economic benefit, according to a new report by consulting company PricewaterhouseCoopers (PwC).
PwC economists forecast a tipping point in 2025 if blockchain technologies are adopted at scale across the world, and expect blockchain applications to boost global gross domestic product (GDP) by $1.76 trillion, (1.4% of global GDP) by 2030.
According to the report, blockchain will make the biggest impact on Asia’s economy with China, India and Japan driving adoption in the region.
China stands to gain the highest potential net benefit at $440 billion, with the U.S. following at $407 billion.
Germany, Japan, U.K., India and France are each estimated to benefit by more than $50 billion in the same period.
The report identified five key application areas of blockchain with potential to generate economic value: product tracking and tracing ($962 billion), financial services and payments ($433 billion), identity security and credentials ($224 billion), contracts and dispute resolution ($73 billion), customer engagement and reward programs ($54 billion).
Public administration, education and health care sectors will benefit the most ($574 billion increase by 2030) by “capitalizing on the efficiencies blockchain brings to the world of identity and credentials,” the report said.
A survey conducted as part of the report revealed 61% of CEOs across the world are placing digital transformation of core business operations and processes among their top three priorities.
“Serious activity around blockchain is cutting through every industry across the globe right now,” Steve Davies, global Blockchain leader at PwC, said in the report. In a press statement he added that the acceleration of disruptive trends in the business world is driven by the COVID-19 pandemic.