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Nine in 10 government executives plan to invest in blockchain solutions by next year

Gabriela Motroc
blockchain

Planning 2018 image via Shutterstock

IBM revealed in its most recent survey that nine in 10 government executives plan to make blockchain investments by next year. Furthermore, seven in ten government executives predict blockchain will significantly disrupt the area of contract management.

IBM Institute for Business Value’s new study titled Building Trust in Governments (carried out in conjunction with the Economist Intelligence Unit) found that a number of governmental organizations are embracing blockchain technology to promote more extensive collaboration.

David Zaharchuk, Global Industry Research Leader at IBM Institute for Business explained in a blog post that the study surveyed 200 government leaders in 16 countries about their experiences and expectations with blockchains. One of the conclusions was that “nine out of 10 governmental organizations plan to invest in blockchain for use in financial transaction management, asset management, contract management and regulatory compliance by 2018. Furthermore, seven out of 10 government executives predict blockchain will significantly disrupt the area of contract management, which is often at the intersection of the public and private sector.”

SEE ALSO: Embracing blockchain can help investment banks save $12 billion per year

Early adopters will to have blockchains up and running this year

In addition to the encouraging news that nine in 10 government executives plan to invest in blockchain by 2018, Zaharchuk revealed that they discovered a small group of pioneers that are setting a fast pace and new direction with blockchains today.

These leaders, who make up 14 percent of our survey respondents, expect to have blockchains in production and use this year.

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Building trust in government report

According to the findings, the government agencies they surveyed in Asia Pacific and Western Europe are setting the pace of adoption while North America lags behind all regions — “a reflection perhaps of the complexity of coordinating blockchain applications across federal and state jurisdictions in the United States.”

Nearly half of the early adopters are already investing in three areas: asset management, identity management and regulatory compliance.

What’s next?

The report revealed that the next step could be an open government. “As part of a collaborative ecosystem enabled by blockchains, government could become a trusted partner and reinvent existing processes to enable more collaboration across agencies and with citizens. Blockchains could provide a consistent, transparent and open view of activities, information and decisions, fueling the open innovation and reinvention of government services.”

However, one should not forget about the technology challenges. According to the report, these challenges must be addressed, particularly those relating to privacy and security.

Author
Gabriela Motroc
Gabriela Motroc is an online editor for JAXenter.com. Before working at S&S Media she studied International Communication Management at The Hague University of Applied Sciences.

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