Adoption of blockchain technology within the financial services industry could be significantly delayed by the damaging PR currently associated with cryptocurrencies, according to new research.

A report from law firm Gowling WLG stated that an estimated $2.1 billion will be spent on blockchain solutions during 2018, and by 2021 levels are expected to reach $9.2 billion.

Dean Elwood, chief executive of blockchain company Umony and contributor to the report, said that Bitcoin is creating so much noise - much of it negative - that the genuinely useful and practical side of blockchain is getting buried.
“I think there is a real pressure on the industry and people like me, to make sure that everyone really understands the difference between blockchain and cryptocurrencies like Bitcoin,” he added.

In the report, specialists including NEX Exchange, Blockchain Hub, BTL Group and AgriLedger suggested that the development of blockchain will happen much faster if the industry collaborates and regulators are involved in the process, as the very nature of distributed ledger technology (DLT) revolves around sharing information internally, with customers and even competitors.

David Brennan, partner and co-chair of Gowling WLG's global tech team, said the key challenge will be communicating blockchain’s significance to both the public and policymakers. “Collaboration between governments and the private sector is key in order to facilitate widespread acceptance and adoption of the technology,” he commented.

The firm's research also argued that the appropriate industry regulators need to catch-up with the technological developments within blockchain and DLT, yet the majority of those interviewed do not believe that the technology itself requires regulation.

Andrew Gardiner, founder and chief executive of Property Moose, said that cryptocurrencies absolutely need regulating, but you cannot regulate blockchain itself. “It's just a piece of tech,” he stated. “For example, do you regulate Microsoft Word or Google for emails? They all have to be ISO compliant, so you’ll have industry standards, but these are not regulation.”

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