After publicly announcing its support for blockchain technology, a recent report suggested that China was gearing up to invest a hefty sum of over $2 billion in its blockchain ventures by 2023.

According to the International Data Corporation or IDC, a global market intelligence firm confirmed that the Asian country would witness rapid development and growth in blockchain technology over the next 4 years, as the country’s spending on blockchain was estimated to exhibit a compound annual growth of 65.7 percent in that period of the time.

The report also indicated that a majority of China’s spending on blockchain had surfaced only in the banking sector till now but other industries such as manufacturing, retail, and professional services were slowly eyeing incorporation of the technology.

Xue Yu, a researcher with the IDC, stated,

“The official recognition will push the applications of blockchain technology and power fast spending growth in the sector.”

The researcher alluded to the ‘official recognition’ by the President, which has been the instrumental driver in the past few weeks. Since President Xi Jinping revealed his support for blockchain, China has utilized blockchain to improve the efficiency of insurance claims, Hong Kong issued new licenses for virtual asset exchanges and the country introduced the globe to a blockchain alliance based in Shanghai.

Such a substantial investment from China would see the country implement blockchain in various sectors at a faster rate, than ever imagined before.

It was important to take note that China enforced a ban on cryptocurrency trading in the country back in September 2017. Although none of the Chinese officials have spoken about Bitcoin or any other digital asset, an increased interest in blockchain may eventually pave the way for the restrictions to be lifted.