China's expenditure on blockchain technology is expected to increase with an annual compound growth rate of over 65% and to exceed $2 billion in 2023, reads a report by global market intelligence firm IDC.
According to the IDC report, this year most blockchain expenditure went to the banking sector. Researchers expect that with the growth of blockchain use-cases in such industries as manufacturing, retail, and professional services, China will be ready to invest more in developing blockchain technology solutions for the above-mentioned industries.
Xue Yu, an IDC researcher, highlighted that the official recognition from the government will be one of the main drivers facilitating spending growth in blockchain technology.
As COIN360 previously reported, last week the National Development and Reform Commission of the People’s Republic of China has dismissed a proposal to phase the bitcoin mining industry out of the country.
Earlier, China’s President Xi Jinping referred to blockchain technology as “an important breakthrough for independent innovation of core technologies” and urged the country to “clarify the main directions, increase investment...and accelerate the development of blockchain and industrial innovation.”
In the meantime, the People’s Bank of China is reportedly set to be the first central bank to release its own digital currency, the DCEP (digital currency electronic payment).