Financial services bolster blockchain adoption in French enterprises: Study
PwC is currently drawing up a panorama of the state of blockchain in France in 2020, with nearly 100 pure players respondents from the blockchain ecosystem as well as traditional companies across sectors developing blockchain-related projects. In an earlier study, the consulting and auditing firm estimated that blockchain would increase the global GDP by $1760bn, including $58.5bn for France (roughly 2% of its current GDP), while creating 500,000 jobs by 2030.
The latest study stressed that 2020 recorded a turning point where, for the first time, a smaller number of projects were coming from pure player blockchains when compared to other traditional firms. This indicates that blockchain has gone beyond being an insider’s story. Similarly, the research flagged that for the first time, the use of public blockchains is being used as an underlying technology by French companies ahead of consortium blockchains.
The financial services sector accounts for 57% of blockchain projects, with 2020 marking the advent of decentralised finance (DeFi) in this industry, mainly among the pure players in the blockchain ecosystem. Nearly 70% of the pure players in this ecosystem plan to use DeFI applications in the coming months. Despite the obstacles, the blockchain is gradually becoming established as a matter of course within French companies, notably thanks to the increased support of general management, underlined Pauline Adam-Kalfon, partner in charge of Blockchain activities at PwC France and Maghreb. “The financial services sector in France is currently proof of this, knowing that it is anticipated that in 2030, areas such as public administration, education and health would be the most affected,” added Adam-Kalfon.
The structuring of teams and budgets allocated to blockchain in French companies have changed, with five people in SMEs for a budget of €100,000 and 20 people for €1m in large companies. The Covid-19 pandemic has not limited investment since only 23% of the firms plan to reduce it while 31% are planning to increase it in the coming months.
Among the companies not specialising in blockchain, the reasons for delays include identification of the right business model (43%), internal reticence (29%) and government issues or control of regulatory framework (14%). Meanwhile, 56% of the companies surveyed consider access to blockchain training to be difficult or very difficult.
Despite this, 91% of the pure players and 77% of the traditional companies surveyed anticipate the development of blockchain in Grance over the next three years, favoured by regulatory framework, better training on blockchain issues, development of public initiatives, significant financing and increased support for banks in cryptoassets’ domain.