BFSI Blockchain Tech Market Poised for Impressive Growth - Study

The global blockchain technology market in the banking, financial services, and insurance (BFSI) sector is set for growth at a compound annual rate of almost 63% between 2018 and 2022, according to a new study by research and advisory group Technavio.

The report said that increasing investments by governments worldwide are crucial contributing factors in the development of the blockchain technology market in the BFSI space. In countries like Canada, the UK, Russia, and China, the authorities are testing the technology by placing their respective currencies on blockchain. Interest is also growing steadily in developing regions. As the report notes:

“Blockchain technology is also gaining momentum in the African countries. In 2016, Tunisia replaced its eDinar digital currency with a blockchain-based version and became one of the first countries in the world to issue its national currency using blockchain technology... Moreover, in 2016, Senegal introduced a digital currency based on blockchain technology. Government investments are expected to promote the growth of this market in the forecast period.”

JP Morgan reverses stance on blockchain

Investment banking giant JP Morgan, one of the leading critics of cryptocurrencies and blockchain, seems to have come to terms with the technology. A 71-page internal document suggests that CEO Jamie Dimon is warning to the phenomenon.

“Cryptocurrencies are both a new technology — Blockchain — and a new currency (many new ones). The new shape and form of the CC market in the future will likely ultimately depend on what economic value they are perceived to add. We would expect the marketplace and regulators to ultimately weed out what is perceived the negative, less useful characteristics of CCs and retain the positive elements that add economic value."

On Tuesday, an influential Member of the European Parliament for Wales, Kay Swinburne, said that London must embrace blockchain technology to stay relevant when the UK exits the EU. Swinburne explained that blockchain would not simply patch existing systems post-Brexit but “actually leapfrog [them].”