Blockchain a Top 5 Strategy for 73% Chinese Firms, Says Deloitte

By Henry Chan   May 11, 2019 2 Min Read

Deloitte published a survey titled “Deloitte’s 2019 Global Blockchain Survey: Blockchain get down to business” in which the survey polled a sample of 1386 senior executives with companies that have an annual revenue of USD 500 million for US respondents, and annual revenue of USD 100 million for respondents outside of the United States. The participants come from a number of countries including China, Canada, Brazil, Israel, Germany, Hong Kong, Switzerlan, Singapore, Luxembourg, the United Kingdom, United Arab Emirates, and the United States.

While fintech remains the leading application area in blockchain, many companies had followed and expanded their blockchain initiatives across various sectors such as telecommunications, life sciences, healthcare, government, technology, and media.

Exhibit 1: Organizational view on blockchain relevance

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Image Source: Deloitte’s 2019 Global Blockchain Survey

53% of respondents consider blockchain technology to be the critical top five strategic priorities which had a 10-point increase compared to last year.

In addition, 83% of the executive team believe that blockchain can present compelling business use cases (see Figure 2). While blockchain plays a more important role in formulating company’s strategy, 43% of participants felt that Blockchain is overhyped, an 4% increase compared to 2018.

Exhibit 2: Attitudes on blockchain and its adoption

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Image Source: Deloitte’s 2019 Global Blockchain Survey

Countries’ attitude towards blockchain can be the key factor to determine the regional blockchain development. Deloitte performs a regional analysis looking at four countries specifically China, Singapore, Israel and United States. It’s a bit surprising that 73% of Chinese firms chose blockchain as a top-five strategic priority, compared to 56% of the United States. This could be due to the Chinese government strong promotion on blockchain technology in which a whitepaper published by Ministry of Industry and Information Technology suggested that blockchain would have its own long-term application such as copyright protection and product traceability in the “real economy”.

However, only 37% of Chinese executive team believe blockchain presents compelling business use cases. This can be partly explained by the ambiguity of blockchain regulation in China, where 62% of Chinese firms believe industry-specific regulation are the key concern in blockchain regulation.

Exhibit 3: Regional analysis on attitudes of blockchain

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Image Source: Deloitte’s 2019 Global Blockchain Survey

 

 





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