A recent W3NOW study says that even though blockchain has the potential to shake up entire industries, German businesses largely overlook it. A report conducted by the Hanseatic Blockchain Institute in conjunction with the German Federal Ministry for Economic Affairs and Climate Action points out a huge gap in the amount of blockchain used throughout Germany.
In a survey of 9,000 German companies and 204 industry experts, more than a third of businesses (72%) will regard blockchain as irrelevant to them in 2024. They continued with this trend from 2023 when a whopping 74% shared the same level of disinterest. On the other hand, artificial intelligence (AI) and cloud computing have taken off, with AI use approximately doubling from 2023 (13%) to 2024 (27%).
With 46% of German businesses utilizing cloud computing technology and a mere 3% of those engaging with implementing blockchain – cloud computing is the more obvious choice for facilitating digital transformation.
The financial services sector was the first to adopt blockchain, with 132 companies using the technology, with 54 percent of them being so active. That is why this represents blockchain’s maturity in secure transactions and investments.
Another area of growth is digital identity management, where 31% of companies already use blockchain-based solutions and plan on further adoption by 23%. The applications indicate that blockchain is key in decentralized, secure identity verification.
However, if enthusiasm is lacking, only 10% of companies plan to experiment with blockchain’s potential in their promotional strategies.
While Bitcoin is most recognized in Germany, it primarily functions as an investment (57%) and as a form of payment (49%) for customers who have it. Only 5% of respondents use Bitcoin mining, and 32% make transactions on the Lightning Network.
Activity is also prominent in how businesses view Bitcoin as a driver of financial innovation (70%) and as an ability to allow for peer-to-peer payments (54%). Despite that, ESG remains an issue since only 11 percent of the respondents agreed that Bitcoin is ESG-compliant.
The report noted, ‘ The connotation of blockchain with cryptocurrencies is very often and with a lot of negativity associated with its capabilities.’ Nevertheless, media narratives on blockchain and this misconception can make it hard to draw attention back toward blockchain as a secure and versatile tool in many industries.
Blockchain Adoption in Germany: Room for Growth
With the latency of blockchain adoption being painfully slow, Germany risks being left behind by other nations in its capacity to take advantage of blockchain’s transformative potential. With concerted efforts to tackle the regulatory and educational gap, blockchain could play a vital role in finance, identity management, and others.
The report acknowledges challenges, but the future of business via blockchain is not guaranteed. Germany’s blockchain journey is definitely in progress for now, but it is waving that red flag of cautious optimism with a lot of untapped potential.
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