VC funds invested an impressive $14.8 billion in the blockchain sector last year, as companies continue to focus on IT solutions built on the technology
Venture capital (VC) investments in the blockchain sector skyrocketed from $2.1 billion in 2020 to an impressive $14.8 billion in 2021, as both companies and investors are eager to develop IT solutions built on blockchain technology despite the lack of regulatory framework, according to GlobalData.
The leading source of VC investments in 2021 was North America with $6.8 billion. It was followed by Latin America, with $3.4 billion; Europe, with $3 billion; Asia-Pacific, with $1.6 billion; and the Middle East, with $0.44 billion.
GlobalData’s latest report, ‘Innovation in Blockchain Payments’, also forecasts that the blockchain software and services market valued at $4 billion in 2020 will reach a whopping $199 billion by 2030. Integration of blockchain within core technologies such as remittance infrastructures, real estate and the overall financial industry will drive growth.
Today, most blockchain integration projects are still in their nascent stages, since a lack of regulation and skilled workers has prevented some companies from adopting this technology.
Over 90 central banks have expressed their interest in central bank digital currencies (CBDC) which rely on blockchain technology. Although only a limited number of countries have launched their own digital currencies, a lot of attention focuses on the Chinese e-yuan. It is already available as a pilot test in selected regions. Its success would be crucial for mainstream adoption.