Research by Gowling WLG says financial services experts are concerned that the negative headlines about cryptocurrencies like Bitcoin are deterring adoption of blockchain software, as there is ongoing confusion across the sector about the difference between currency units and Blockchain.

The report, The ultimate disruptor - how blockchain is transforming financial services, estimates that around $2.1bn (£1.5bn) will be spent on blockchain solutions during 2018 and spending is set to reach $9.2bn by 2021.

Dean Elwood, CEO of blockchain company Umony and a contributor to the report, said: ‘Bitcoin is creating so much noise, much of it negative, that the genuinely useful and practical side of blockchain is getting buried.

‘There is a real pressure on the industry to make sure that everyone really understands the difference between blockchain and cryptocurrencies like Bitcoin.’

The report suggests 24% of businesses believe their company is on top of the developments that blockchain can bring, but many of the contributors believe that the development of blockchain technology will happen much faster if the industry collaborates and regulators are involved in the development process.

David Brennan, partner and co-chair of Gowling WLG's global tech team, said: ‘The business community has been quick to grasp the opportunities blockchain solutions afford, but the key challenge will be communicating its 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.’

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

Andrew Gardiner, founder and CEO of Property Moose, said: ‘Cryptocurrencies need regulating, absolutely, 100%. But you cannot regulate blockchain itself. It is just a piece of tech. For example, do you regulate Microsoft Word or Google for emails? They all have to be ISO compliant, so you will have industry standards, but these are not regulation.’

The research includes expert analysis by specialists incluing NEX Exchange, Blockchain Hub, BTL Group and AgriLedger.

The ultimate disruptor: how blockchain is transforming financial services

Report by Pat Sweet