Regulatory Uncertainty Proves Biggest Barrier for Blockchain – PwC Survey

Concerns about regulation appear to be challenging blockchain adoption the most, according to a survey by PwC.

Concerns about regulation appear to be challenging blockchain adoption the most, according to a survey by PwC. The number one hindrance limiting the wider adoption of blockchain technology on a global scale in the next 3-5 years is insufficient regulation, auditing giant PricewaterhouseCoopers (PwC) found in a research published on Monday.

Nearly half of the 600 respondents (48%) ranked regulatory uncertainty among the three strongest barriers for blockchain adoption, while 27% specified it as the number one factor in the “Blockchain is here. What’s your next move?” survey.

The number two impediment was the lack of trust among users (45%), with 25% noting it as the most crucial barrier. The difficulty in bringing business networks together emerged as the third biggest challenge for blockchain companies (44%), with 21% of the surveyed seeing it as the biggest problem.

At the same time, four in five executives globally claim to be preparing blockchain initiatives, 25% of which have already implemented the projects or are trialing them, according to the research, which covered executive personnel from 15 territories around the world.

Expert Commentary by PwC Leaders

“Businesses tell us that they don’t want to be left behind by blockchain, even if at this early stage of its development, concerns on trust and regulation remain. Blockchain by its very definition should engender trust. But in reality, companies confront trust issues at nearly every turn,” PwC blockchain leader Steve Davies commented.

Blockchain technology’s decentralized nature and its bid for anonymity contradict a number of typical regulatory aspects, PwC strategic policy advisers leader Alison Kutler told Forbes on Monday:

“This conflict is creating tension, especially in industries with mature regulatory constructs and high-value transactions. In addition, widespread adoption of blockchain across jurisdictions and participants requires standardization, which is often achieved from a central authority,” Kutler said.

Despite the difficulties, some businesses around the globe have managed to introduce blockchain in their operations and PwC’s research found that the frontrunners of blockchain development are in the US, followed by China. In the coming three to five years, however, China is expected to overtake the US.

In any case, the development and deployment of blockchain “is not an IT project”, but rather a “transformation of business models, roles, and processes,” Davies maintained.