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CEE, Hungary a few steps back in blockchain technology: Deloitte | The Budapest Business Journal on the web

Bence Gaál

Monday, January 14, 2019, 10:44 am

Most of the company leaders say that the use of blockchain technology in the business provides a clear competitive advantage, but only a third started using it, as many are still looking for possibilities to apply the technology, according to a survey of the company Big Four Deloitte.

Károly Marton, expert blockchain of Deloitte.

"Hungary and the whole EEC are within walking distance of the US and Western Europe in the application of the blockchain: they are waiting to see where it could be most useful", says Károly Marton, Deloitte Hungary's senior manager for blockchain based solutions.

"The possibilities and solutions already implemented around the world are promising: Business leaders do not need to understand the depth of technology, but the ways to use blockchain in business, the cases in which it can be used and the answers given to current problems, if blockchain is to continue to spread more widely. "

In the CEE region, the use of the blockchain is limited to payment solutions and digital records, but the development of digital identification and supply chain tracking is already under way, says Deloitte.

However, 39% of respondents interviewed globally believe that the potential of technology is judged too positively. In the United States, 44% believe that the blockchain is overvalued, compared to 34% in 2016. In the CEE region, more than half consider the overestimated technologies, but 45% think not to use such solutions will mean that their activity is lower to competition.

According to the representatives of energy, technology, media and telecommunications, ignoring the blockchain could mean a serious disadvantage. Almost half of the surveyed financial sector leaders consider using the technology to be important, but the majority think it will not cause much disruption to the financial services market.

Blockchain Challenges

Blockchain in the CEE region is still in its infancy and most of the respondents have not yet invested in technology. According to the results of the survey, blockchain is not a priority. Its introduction is slowed by the lack of a professional workforce and also by regulatory issues. Only 1% of respondents think that there are no obstacles to investment in technology.

Despite these challenges, respondents expect technology to significantly transform business operations, with around two-thirds thinking that the blockchain will become widespread and that it is more than just a new payment technology. Therefore, they expect it to influence other sectors outside of finance. However, only 42% think their business leaders have a thorough understanding of the blockchain. Furthermore, less than a third floor allows a complete or partial replacement of an existing system with blockchain-based innovations.

Trends in the EEC regarding blockchain investments in 2019 are similar to those of the last few years, says Deloitte. More than half of the respondents do not plan blockchain investments or are undecided, but some respondents say they are planning a serious investment. Almost 30% said they plan to mobilize at least 100,000 euros for this technology.

EC respondents also noted that new business models and revenue sources are the main advantages of technology, and almost 60% think that blockchain-based solutions are safer than traditional methods.

The pace of global spread of the blockchain is influenced by several factors: the poor reputation of cryptocurrencies, the slow creation of regulatory frameworks and industry standards, the low number of blockchain experts and problems arising from the control of consortia, says Deloitte.

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