- According to the latest research report, 72% of German companies do not consider it necessary to integrate blockchain into their business operations.
- The report also finds that negative media coverage, regulatory uncertainties, inadequate expertise and other factors contribute to the challenge of blockchain adoption in Germany.
As blockchain technology permeates businesses and is being seriously considered by top institutions around the world, a new report reveals that Germany appears to be one of many countries missing out on this groundbreaking solution. This was evident from a recent study in which the input from 9,000 German companies and 204 experts was analyzed.
Dive into the study
According to W3NOW research, more than 74% of German companies did not consider blockchain relevant to their business operations in 2023. Fascinatingly, 72% of such companies made the same announcement in 2024. Meanwhile, artificial intelligence (AI) is being rapidly adopted by companies as the rate rose from 13% in 2023 to 27% in 2024.
When we further examined the research report, we found that the adoption rate of Cloud Computing had surpassed that of AI and the blockchain. Specifically, 46% of German companies used cloud computing in 2023, compared to 13% using AI and 3% blockchain.
The research report estimates that 54% of the 132 companies currently using blockchain technology in the country are in the financial services industry. According to the data, the increasing use of blockchain technology in this area indicates that it is well tested and is likely to be driven by the availability of capital and investment.
In addition to the financial services sector, 31% of companies actively using blockchain are in the digital identity sector, while only 1% are in the healthcare data management sector.
Source: W3NOW 2024 report
Reasons for the poor adoption of Blockchain in Germany
Assessing the potential challenges facing blockchain adoption in Germany, the study highlighted that the lack of user-friendly applications, negative media coverage, regulatory uncertainties and the shortage of skilled professionals are the leading factors .
According to the report, blockchain is usually associated with cryptos. This implies that market volatility and associated negative perceptions of the asset class have extended to its associated technology. Furthermore, negative media coverage erodes trust in blockchain solutions and discourages their use at reputable institutions.
Source: W3NOW 2024 report
However, it is important to emphasize that many blockchain applications with potentially high economic relevance do not directly interact with end users. Instead, blockchain technology is often used in the background, without media visibility, which somewhat reduces the relevance of public awareness for broader blockchain adoption.
Bitcoin use in Germany
When assessing the primary use of Bitcoin (BTC) in the German economy, the researchers also found that 57% of users use it for their investment activities, while 49% use it for payments. Furthermore, 32% of respondents disclosed that they use the Lightning Network for transactions, while 5% also engage in Bitcoin mining.
According to 70% of respondents, their primary use of Bitcoin is motivated by its role in shaping the future of finance. 54% also admit that they are attracted by the ability to facilitate peer-to-peer transactions without any intermediaries. Meanwhile, only 11% agreed that Bitcoin meets environmental, social and governance (ESG) criteria.
At the time of writing, Bitcoin was trading at $97.4k, after rising 35% in the past 30 days.
Credit : cryptonews.net
