KUALA LUMPUR (Oct 4): Research and advisory outfit Gartner Inc is predicting that by the end of 2020, the banking industry will derive US$1 billion in business value from the use of blockchain-based cryptocurrencies.
Revealing its top predictions for IT organisations and users in 2018 and beyond, Gartner said the current combined value of cryptocurrencies in circulation worldwide is US$155 billon, and this value has been increasing as tokens continue to proliferate and market interest grows.
It said cryptocurrencies are more mature than the technical and business infrastructure that supports them.
Gartner explained that this is, in part, due to the lack of credibility tokenized developments have received from mainstream businesses.
However, it said once banks start to see cryptocurrencies and digital assets in the same context as more traditional financial instruments, more distributed business value will begin to accrue.
This requires every industry to rethink aspects of current fiat-based business models such as pricing of goods and services, accounting and tax methods, payment systems, and risk management capabilities to accommodate these new forms of value in their business strategies, said Gartner.
Its other key predictions are:
Commenting on the findings, Daryl Plummer, vice president and Gartner Fellow, Distinguished, said: "Technology-based innovation is arriving faster than most organisations can keep up with. Before one innovation is implemented, two others arrive."
"CIOs in end-user organisations will need to develop a pace that can be sustained no matter what the future holds. Our predictions provide insight into that future, but enterprises will still be required to develop a discipline around how pace can be achieved.
"Those who seek value from technology-based options must move faster as their digital business efforts move into high gear. Speed of change will require variability of skills and capabilities to address rising challenges," he said.