Investments in blockchain technology drops 63% in 2020

Audit and consultancy firm, KPMG, released a report that analyzes the effects of the corona virus crisis on the funding and development of blockchain technology. The report titled “Enterprise Reboot” stating that investments for blockchain technology development fell 63% amid the corona virus crisis.

The report is based on a survey of 900 executives listed in Forbes “Global 2000”. This benchmarks the largest companies with annual sales of over $ 1 billion.

The study found that blockchain funding has been hit hard by the crisis. Executives said investments for blockchain technology have fallen by 63% on average. This is the highest percentage among emerging technology sectors.

The report also observed that Global 2000 companies quickly cut funding for other emerging technologies such as artificial intelligence and 5G. About 40% of executives said they had decided to stop investing in technological innovations altogether.

A rebound in investments?

However, the report found that 59% of executives believe the corona virus has created momentum for digitization.

Thus, the report predicts that the Artificial Intelligence (AI), 5G and blockchain sectors will see an increase in investments in the next 12 months. Indeed, large companies are looking to gain an additional competitive advantage in the context of the corona virus pandemic. The report mentions:

Investments in blockchain technology are seen as a way to improve competitive positioning in order to improve efficiency and governance processes and to provide the foundation for infrastructure modernization.

In addition, 65% of executives believe that the combined use of emerging technologies can lead to the creation of greater solutions than investing in a single technology.