Blockchain in the Public Sector
24 July 2020
Original content provided by BDO
BDO has conducted an international survey on the use of blockchain technology in the public sector. We surveyed 250 senior levels, within the public administration sector, the municipal administration and health and social services, which resulted in some very interesting insights.
While 56% of respondents believe that the public sector will use blockchain technology, 44% stated that there is currently vast uncertainty around the technology itself.
However, the respondents agree there is a great need for education and regulation on blockchain, and recent studies also indicate that the technology is becoming more and more accepted by public administration. For example, in Estonia blockchain provides the backbone of the e-Estonia program, which connects government services through a single digital platform.
Despite these promising evolutions, very few organisations today have practical experience with it and are instead implementing other digital technologies they believe are more accessible.
In these post-COVID times, where many public sector organisations will rethink their digital strategy, choosing between blockchain and other technologies will be an important decision to make. Our BDO digital experts can offer a better understanding of all possible options, and can support in making the right decision.
Some of the key findings are:
- Blockchain technology has infinite potential for the public sector.
- The rapid growth of blockchain technology can play a vital role in advancing the public sector.
- 64% of respondents show an openness to innovative solutions, and 57% believe that the public sector will utilise blockchain technology’s potential.
- The results show both a will and a way - with teams already assigning budgets to test blockchain use.
- A positive trend in the public sector is evidenced by the percentage of use cases and general attitude towards blockchain technology.
- Each technology, whether market leader or newcomer, has benefits and threats. Over 70% of respondents are confident that blockchain will improve data traceability.
- We see blockchain as an enabler of an entirely new level of information exchange, both within and across industries
- 80% of respondents believe the lack of blockchain regulation is the biggest obstacle in terms of blockchain implementation.