The projections were made in an IDC Government Insights report, published April 18.
IDC states that blockchain expenditure between state and federal governments is also expected to increase from $4.4 million in 2017 to $48.2 million in 2022—a, near 1,000% increase.
Federal civil agencies— who supposedly expended less than $20 million on technological advancements in 2017—will end up spending more than $80 million by 2022, the study persists. The Defense Department— which also ended up spending lesser than $20 million in 2017—could just about double this figure, hitting $40 million by 2022, the IDC states.
Public spending in blockchain technology will probably grow and broaden to include more complicated sectors over time, Shawn McCarthy, IDC Research Director, summarized:
“We believe asset management, identity management, and smart contracts will be the leading blockchain solutions for government. Early 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.”
IDC also observes that blockchain will become a backbone of trade regulations, and is likely “to be implemented as a standard feature for some types of authorized international trade and also as a standard for many types of government procurement.”
In regards to particular technology implementation, the report concludes that a hybrid blockchain approach— incorporating elements of private and public networks — will likely be the most prominent among government entities. Noticeably, the existing Republican Minority Leader in the US.
House of Representatives repeatedly insisted that blockchain should be enforced to enhance regulatory system fairness and deliver more safety and accountability to government. A distinct 2018 IDC report predicted global blockchain expenditure to increase to $9.7 billion in 2021.