US Federal Government Blockchain Funding Increases
The popularity of using blockchain services has increased each year dramatically. It’s reached the point that the United States Federal Government has already spent millions on blockchain development and by 2020, spending is expected is increase to $123.5 Million. This is more than a 1,000% increase compared to the $10.7 Million spent on blockchain development in 2018. IDC Government Insights revealed this information on April 18th.
Their report also indicates that spending on local and state government will also receive a 1,000% rise in funding by the year 2022. During 2017 local and state governments received a maximum of $4.4 Million for blockchain development. They will now receive a maximum of 48.2 Million by 2022.
The Defence Department approached the federal government about their concerns on blockchain technologies. The USDD indicated that during 2017 only $20 million was spent by civilians on this new technology. However, reports and statistics suggest that civilians will spend upwards of $80 million each year by 2020.
The Research Director for the IDC, Shawn McCarthy, stated: “We believe asset management, identity management, and smart contracts will be the leading blockchain solutions for government. New spending will focus on supply chain and asset management solutions, while spending in later years will expand to include more identity management and complex financial transactions.”
The IDC in their report noted that blockchain will become the cornerstone of trade legislation and that it will likely become a standardised feature for international trade. This government insight group implanted ways the technology could favour the federal government, indicating the hybrid blockchain approach which combines public and private networks into one.
Worldwide, IDC has reported that by 2021 the total spending on blockchain technologies will reach $9.7 Billion. This figure is what has to lead the U.S. House of Representatives to increase federal funding.