In May 2024, Statista reported that spending on blockchain technology in Canada grew at a CAGR of 73.3% between 2018 and 2023. So why does this number seem so high? Blockchain offers benefits such as decentralization and increased security that are relevant in the modern world.
In fact, a House of Commons committee said in a 2023 report that this distributed ledger technology could have long-term economic benefits for Canada, and that the government should do more to take full advantage of blockchain. He said there are many things. As you read on, you’ll discover some of the factors that contributed to the popularity of this technology, as well as other surprising facts that will pique your interest.
Popularity of digital currency
According to Wealth Professional, Canada ranks 8th among the most crypto-friendly countries in the world, demonstrating the country’s continued adoption of digital currencies. And thanks to advances such as mobile technology, trading services can now be accessed from anywhere at any time. Whether you want to trade Bitcoin or other cryptocurrencies, you can do so at the touch of a button.
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The report further revealed that there were approximately 1,204 crypto-related searches per 100,000 people in the country each month.
Part of the appeal of cryptography is its secure infrastructure and high speed, which has attracted several industries. Did you know that according to the Federal Reserve, up to 79% of modern consumers prefer instant transactions, and providing such an experience can reduce costs by up to 48%? Exactly what cryptocurrencies offer is.
More industries can benefit
From a global perspective, the industrial value of blockchain could reach $1.59 trillion by 2030, according to Namil Anani, CEO of the Information and Communication Technology Council. About three years ago, Statistics Canada reported that about 0.3% of Canadian businesses had adopted this technology, most of them medium-sized and larger.
Indeed, we can all agree that online fraud is rampant, right? Karinten, one of the House of Commons committee witnesses, said this distributed ledger technology could reduce fraud in the pharmaceutical industry and increase resiliency in the food supply chain. He told the group that it could help strengthen them. Blockchain technology provides a useful mechanism when it is necessary to check whether medicines are counterfeit, damaged in transit, or expired. You can imagine the cost of a complete recall after a product is found to be defective.
Celebrities from top universities are also celebrating blockchain adoption. Victoria Lemieux from the University of British Columbia suggested the technology could help the country with international trade. He added that many major trading partners are leveraging blockchain, so supporting blockchain could help ensure interoperability with them.
Supply chain management industry case study
Most of the internationally reputed supply chain companies usually face challenges such as large-scale data discrepancies and interruptions in payment processes. A large Canadian retailer has faced these challenges in the past and developed a blockchain-based automation system to help manage invoices and payments for 70 third-party carriers.
Imagine the effort involved in making over 500,000 deliveries per year. Don’t forget the huge amount of supplies and think about different time zones and climates. Each stop must be tracked and fuel updates and temperature changes must be included separately on each bill.
Such large amounts of data can lead to errors and can be very costly. The situation was compounded by the fact that 70% of these invoices required reconciliation, leading to higher transaction costs and dissatisfied carriers.
The retailer identified the use of multiple information systems and inability to communicate effectively with carriers as major problems. This means manual adjustments are required, which is time-consuming, labor-intensive, and costly.
To overcome this challenge, a collaboration to develop blockchain infrastructure helped automate these processes. Fortunately, they were able to work with one of their carriers to develop a pilot version in 2019, which was successfully tested over two years.
last word
As you can see, various companies have benefited from the magic of blockchain. That’s why spending on blockchain may have increased. Gone are the days when you had to wait weeks or months for your payments to be processed.
Many shoppers today prefer near-instantaneous experiences, and blockchain technology provides just that. As Canadian businesses look to strengthen their global appeal amid changing tastes, more blockchain technology is likely to be adopted to stay relevant.
This content is for educational purposes only. Your situation is different, and the products and services described herein may or may not be suitable for your individual situation. This is not financial advice or the provision of financial services. Performance information is subject to change. Past performance is not indicative of future results. All investments involve risk of loss.
Any claims, recommendations, or errors are solely those of the contributors, and readers are responsible for evaluating all information contained herein.
Lee Enterprises’ newsroom and editorial department were not involved in the creation of this content.
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