The ease of access and buying cryptocurrency is estimated to drive the market growth. The customer is just required to download wallet, add money and scan with the phone to earn a bitcoins. There are numerous methods to buy the currency, for instance, online exchanges such as Coinbase and Kraken provide such services. The increasing technological familiarity and efforts of different groups in order to make the general public familiar about the new technology is anticipated to drive the market growth.
The initial coin offering is one of the driving forces for global cryptocurrency banking market in which the company issues a token or cryptocurrency against the service provided. The cryptocurrency is expected to have an edge over the local volatile currency and geopolitical risks. In some cases, for instance, businesses with developing counties have resulted in complexity, uncertainty and unreliable transactions. The crypto currency is anticipated to provide wall against these hazards of unpredictable market place.
The global Cryptocurrency banking market is anticipated to record a significant growth over the forecast period i.e. 2019-2027 owing to increasing adoption of crypto currency for transactions. There are around hundreds of crypto currencies being traded in the market on the basis of a shared public ledger between participants without any central authority. The market is segmented by services, by key industry sectors, by application and by crypto currency. The key industry sector segment is further segmented into wallet, exchanges, payments and mining, out of which, the exchanges segment is anticipated to hold the leading share in the market on the account of their function to provide liquidity, a market place for trading and price discovery along with their service of selling and buying cryptocurrencies and digital assets from national currencies and other crypto currencies. The wallets segment is anticipated to witness significant growth during the forecast period on the back of the ability to securely send, receive and store the cryptocurrency by using cryptographic keys management. The variety in the wallets ranging from open source to closed and small to large wallets is expected to drive the market growth. However, it is predicted that with time, the line between the wallets and exchanges segment will blur, leading to emergence of a universal platform. On the basis of cryptocurrency, the market is segmented into bitcoin, ether, dash, monero, ripple, litecoin and others, out of which the bitcoin segment is anticipated to have leading share in the market during the forecast period. Dash and Monero combined are expected to witness significant market growth on the back of attacks on etherum ecosystem. Bitcoin is supported by wallets, exchanges and payment services as a result of which it holds a major market share. CLICK TO DOWNLOAD SAMPLE REPORT
The recent cases of fraud and IT security have been weighed as the highest challenge various companies face. The sudden increase in the market prices has resulted in increasing criminal cases and cyber-attacks leading to loss of numerous customer funds and data breach. In some cases it has been observed that the losses were so high that the exchanges were closed and the customers never received refund. The companies face the challenge of maintaining a good relationship with the banking institute and money transfer operators since the high cost and the regulatory compliance system pose a big challenge for the crypto currency payment providers. Additionally, the tax imposed on mining profits and tight regulations on cryptocurrency mining adoption coupled with problems faced by payment rails in converting cryptocurrency to the national currency are factor expected to restrain the market growth during the forecast period.
Our-in depth analysis of the global cryptocurrency banking market includes the following segments:
On the basis of regional analysis, the cryptocurrency banking market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region.
The market in Asia-Pacific is expected to have leading share during the forecast period owing to the presence of key market players in the region coupled with the technical development and internet revolution. The employment rates in this industry is high in this region which is further estimated to increase the market growth. The market in Europe is predicted to witness significant growth on the back of numerous technological advances in the region coupled with the high usage of wallets. Further, the market in North America is anticipated to hold a significant market share on the back of growing usage of wallets by the population.
The global crypto currency banking market is further classified on the basis of region as follows:
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
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