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65 per cent of banks intend to develop blockchains within three years

(Image credit: Image Credit: Majestic B / Shutterstock)

IBM has released a new study that reveals that there is tremendous enthusiasm for blockchain technology, with 65 per cent of the banks surveyed expecting to have blockchains “in production” within three years.

The company gathered the information for its new study entitled “Leading the Pack in Blockchain: Banking Trailblazers Set the Pace” by surveying 200 global banks. A separate study titled surveyed 200 global financial market institutions and found equal enthusiasm for this new technology. According to IBM, the adoption of blockchain technology has occurred dramatically faster than was initially expected.

Of those surveyed in both studies, around 15 per cent of banks and 14 per cent of financial market institutions are intending to implement full-scale, commercial blockchains as early as next year. Mass adoption of the technology will likely occur in three years with 65 per cent of banks expecting to implement blockchain technology by that time.

The IBM Institute for Business Value (IBV) conducted its survey which revealed that 70 per cent of early adopters have made their blockchain efforts a priority in an effort to help break down the current barriers to creating new business models and expanding into new markets.

Early adopters have put themselves in a better position to defend against their competitors which includes start-up non-banks. When it comes to financial market institutions, seven out of 10 early adopters have decided to focus their blockchain efforts on clearing and settlement, wholesale payments, equity and debt insurance and reference data.

IBM Banking and Financial Markets' global industry general manager, Likhit Wagle offered insight into the advantages of being an early adopter of this new technology, saying: “There are man advantages to being an early adopter of blockchain technology. To start, first movers are setting business standards and creating new models that will be used by future adopters of blockchain technology.

"We're also finding that these early adopters are better able to anticipate disruption, fighting off new competitors along the way.” 

Image Credit: Majestic B / Shutterstock

Anthony Spadafora
After living and working in South Korea for seven years, Anthony now resides in Houston, Texas where he writes about a variety of technology topics for ITProPortal.