Despite the transformative potential of blockchain technology, German businesses have largely overlooked its significance. A recent W3NOW study, conducted by the Hanseatic Blockchain Institute and the German Federal Ministry for Economic Affairs and Climate Action, highlights the limited awareness and adoption of blockchain across industries in Germany.
Limited Relevance of Blockchain for German Companies
The study, based on quantitative surveys involving 9,000 German companies and 204 experts, coupled with qualitative interviews, revealed that blockchain is “not an issue” for the majority of businesses in Germany.
AI and Cloud Computing Dominate, Blockchain Falls Behind
Between 2023 and 2024, over 72% of companies reported that blockchain technology had no relevance to their operations. This lack of interest contrasts sharply with the adoption of artificial intelligence (AI), which surged from 13% in 2023 to 27% in 2024.
Cloud computing, however, stands as the most widely adopted innovation. As of June 2023, 46% of companies had implemented cloud solutions, far exceeding blockchain (3%) and AI (13%).
Finance and Digital Identity Lead Blockchain Adoption
The survey identified finance and digital identity as the two primary sectors driving blockchain adoption in Germany. Among 132 blockchain-using companies:
- 54% operate within financial services, reflecting blockchain’s maturity in managing capital and investments.
- 31% use blockchain for digital identity solutions, while 23% plan future implementation, emphasizing the technology’s role in secure, decentralized identity management.
- Marketing applications lag, with only 10% of companies considering blockchain for their strategies.
Bitcoin in Germany: A Focus on Investments
Bitcoin (BTC) dominates Germany’s cryptocurrency landscape but is primarily regarded as an investment asset. Key findings include:
- 57% of respondents use Bitcoin for investments.
- 49% accept it for customer payments.
- A smaller segment (32%) utilizes the Lightning Network, while Bitcoin mining remains niche at 5%.
Most respondents (70%) view Bitcoin as central to the future of finance, particularly for peer-to-peer payments, though concerns remain about its environmental, social, and governance (ESG) credentials.
Blockchain’s Image Problem in Germany
The study underscores significant barriers to broader blockchain adoption:
- Regulatory uncertainty.
- A lack of user-friendly applications.
- Negative media coverage, which often links blockchain to volatile cryptocurrencies.
- A shortage of skilled professionals.
This perception issue, fueled by misleading narratives, makes it challenging to position blockchain as a secure and versatile solution for diverse applications.
Recommendations for Improved Adoption
The W3NOW report suggests actionable steps to promote blockchain adoption in Germany:
- Strengthen collaboration between universities and businesses.
- Develop clear and innovation-friendly regulations.
- Focus research on ESG-compliant applications and synergies between blockchain and AI.
The authors also stress that many blockchain applications operate in the background, away from public view, reducing the need for widespread public awareness while fostering sector-specific adoption strategies.
By addressing these challenges, Germany could unlock blockchain’s potential, fostering innovation and economic growth across industries.
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