Global economic powerhouse China is forecast to spend more than $2 billion on blockchain technology by 2023.
The news comes shortly after President Xi Jinping made an announcement claiming the technology will be essential to the country’s future during a meeting of the Chinese Communist Party (CCP).
China’s expenditure on blockchain will see a compound annual growth rate of a remarkable 65.7%, according to figures estimated by market intelligence firm IDC.
Discrete manufacturing, retail, professional services, and process manufacturing are reportedly among the top industries in the nation to be attracted to the prospect of using blockchain technology.
These sectors represent opportunities for blockchain to drastically streamline and enhance areas such as supply chains and data immutability.
IDC researcher Xue Yu says President Xi giving his stamp of approval means blockchain technology now has official recognition in the country.
This will rapidly accelerate both the growth and adoption of blockchain, allowing China to increase its spending within the industry.
President Xi has been quick to clarify that his statement was about blockchain and not Bitcoin, but recent events may highlight a shift in sentiment towards cryptocurrencies as well.
China recently reversed its ban on crypto mining in the country, while a state-run newspaper read by millions featured Bitcoin on the front page earlier this week.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.