Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Germany are falling behind when it comes to blockchain adoption.
Germany Falling Behind?
A recent has shown that negative media coverage and a lack of understanding are key factors in hindering blockchain adoption in Germany. The European nation has largely overlooked the transformative technology according to a recent study by W3NOW. This is an initiative of the Hanseatic Blockchain Institute and the German Federal Ministry for Economic Affairs and Climate Action. The study combined two quantitative surveys of over 9,000 German companies and 204 experts which revealed that blockchain technology is simply “not an issue” for the majority of German companies.
As part of the surveys in both 2023 and 2024, more than 74% and 72% of companies, respectively, said that blockchain was not relevant to their business operations. It is an interesting situation compared to the rapid adoption of artificial intelligence (AI). The percentage of companies actively using AI doubled from 13% in 2023 to 27% in 2024. The most widely adopted technology was cloud computing, coming in ahead of both blockchain and AI. In June 2023 over 46% of German companies were already utilizing cloud computing, compared to blockchain at 3% and AI at 13%.
As part of the survey 132 companies which already make use of blockchain technology were asked about the areas they implement these technologies in their business. The financial services sector is leading the way in blockchain adoption in Germany. A total of 54% of surveyed companies already makes use of the technology and this is a higher rate of adoption and shows that blockchain is mature and well-tested in this sector.
There was also strong growth potential in digital identity, with 31% of companies having implemented various blockchain-based solutions and 23% in the planning stage. It shows a trend of blockchain's ability to provide secure and decentralized identity management. Making use of blockchain technology for marketing only came in at 28%, while it was also revealed that only 10% of companies plan to implement blockchain into their marketing strategies.
In terms of cryptocurrency, Bitcoin remains the dominant force in Germany and its use in the German economy is primarily focused on investments (57%) and customer payments (49%). Of the respondents, a third use the Lightning network for transactions, while Bitcoin mining is not a popular activity with only 5% involved.
Many consider Bitcoin as capable of shaping the future of finance, with 70% of respondents agreeing with this sentiment. However, only 11% of respondents believe that Bitcoin meets environmental, social and governance (ESG) criteria.
The survey from W3NOW showed that there are many challenges hindering the adoption of blockchain technology in Germany. Among them are regulatory uncertainty, a lack of user-friendly applications, negative media coverage, and a shortage of skilled professionals were identified as major obstacles.
The report stated:
“In many cases, blockchain is associated with cryptocurrencies and their volatile markets, which leads to a misleading perception of the technology among the general public. This negative media coverage makes it difficult to build trust in blockchain solutions and to position the technology as a versatile and secure foundation for a wide range of applications.”
The report advises that to foster better blockchain adoption in Germany the nation requires closer collaboration between universities and businesses, creating clear and innovation-friendly regulations, and focusing research on how blockchain can be used in specific industries. The authors of the study concluded:
“However, it’s important to emphasize that many blockchain applications with potentially high economic relevance are not directly in contact 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.”
Have a great day.
Peace. CryptoGod-1.
Referral Links and Follow Me:
