Market Outlook:

The anticipated global digital currency market size is poised to reach USD 6.1 Billion by 2024, with a projected escalation to USD 17.01 Billion by 2032, reflecting a compound annual growth rate (CAGR) of 12.64% during the forecast period. 

Digital currency is any form of money or asset primarily handled, saved, or transmitted using digital computer systems, particularly the Internet. It is also known as electronic money or digital money. This encompasses all forms of digital currency, including virtual currency, cryptocurrency, and digital currency issued by central economies. In contrast to traditional currencies, represented by coins or banknotes and can be used for practically instantaneous and significantly less expensive transactions over the Internet, digital currencies are created electronically. Digital currencies can be reserved in scattered databases, centralized electronic databases, stored-value cards, and digital files. They can be used for cross-border transactions, ownership transfers across national borders, and purchasing goods and services. Digital currencies can be classified as either centralized, with a single point of control over the money supply, or decentralized, with power selected democratically or predetermined. Digital currency development has been influenced by technological advancements, with cryptocurrencies such as Bitcoin enabling decentralized blockchain-based currencies.

Market Dynamics:

Driver:

The growing adoption of distributed ledger technology drives the growth of the digital currency market. Distributed Ledger Technology (DLT) has gathered noteworthy interest from the financial sector, mainly in the digital currency market. DLT is considered by its decentralized record-keeping method and has been broadly applied, particularly in digital currencies like Bitcoin. These currencies eliminate the need for middlemen and improve the efficiency and economy of payment, clearing, and settlement procedures by utilizing decentralized ledger systems to enable safe and transparent transactions. According to Statista, supply chain audits dominate the internationally distributed ledger industry, which is divided into different use cases. The market is expected to reach 103 billion USD by 2030, a remarkable increase from 2020 estimates. Since cryptocurrencies like Bitcoin mostly rely on decentralized ledger systems for transaction validation and security, their rise has increased interest in and investment in DLT. Concerns about data integrity and trust in digital transactions have also led to an increase in the need for transparent and impenetrable record-keeping.

Restraint:

The absence of rules governing the creation and valuation of digital assets hinders the growth of the digital currency market. The ecosystem surrounding digital currencies is now vulnerable to fraud, market operation, and security breaches due to the lack of legal outlines. Hackers have attacked cryptocurrency interactions due to insufficient monitoring, resulting in large losses of digital assets and a weakening in market confidence. Moreover, the lack of legislative certainty has delayed the seamless incorporation of digital currencies into traditional financial organizations, restraining their usability for both routine transactions and investment objectives. For consumers and investors looking for market stability and predictability, the lack of clear regulations guiding the valuation of digital assets makes price volatility worse. To promote legitimacy, stability, and trust in the digital currency ecosystem, these regulatory deficiencies must be filled. Clear and thorough laws help reduce risks, protect the interests of consumers, and encourage increased responsibility and transparency in the digital currency industry. 

Opportunity:

The increasing extensive and low-cost access to digital money and phone-based transactions creates a lucrative opportunity for the growth of the digital currency market. For the projected 1.7 billion unbanked and underbanked people worldwide, the probability of widespread and reasonably priced access to digital money and phone-based transactions might significantly enhance financial services. Digital currency adoption is particularly significant for low-income and emerging countries because it has the potential to change the financial landscape, promote payment system integration, and enhance interoperability. The financial well-being of people in low-income and emerging regions could be greatly enhanced by digital currency. Furthermore, digital money's revolutionary effects go beyond making cross-border transactions easier. Additionally, it gives people and companies in developing nations access to vital financial services including credit, insurance, investment opportunities, and savings. Digital money promotes financial inclusion and economic empowerment by offering a practical and easily accessible way to perform financial transactions, opening up new avenues for underprivileged groups to achieve wealth.

Challenge:

Security and regulatory uncertainty were the main areas of concern. The inability of governments throughout the world to adequately control cryptocurrencies has caused unpredictable policies that hinder innovation. Cybersecurity risks are still a main worry, as well, since well-publicized hacks have cost stockholders a lot of money. According to Chain analysis, crimes including cryptocurrencies cost more than $14 billion in 2022 alone. The requirement of strong safety measures and customer education is emphasized by these security incidents. Moreover, there has been criticism of the environmental effects of withdrawing cryptocurrencies, particularly Bitcoin, which is projected to use around 0.5% of the world's energy supply.

Key Players:

• Apirone Ou
• Bank of Canada
• Binance
• Circle Internet Financial Limited
• Coinbase
• European Central Bank
• iFinex Inc.
• NOWPayments
• Polkadot
• ProBit Global Services Limited
• Reserve Bank of India
• Cryptomus
• Ripple
• Xapo Bank Limited
• Others

Recent Development:

• In September 2023, Ripple stated that it had acquired Fortress Trust, a crypto infrastructure business. Fortress Trust's main goal is to hold a Nevada trust while facilitating communication between big businesses and digital currencies. It is anticipated that this acquisition will strengthen Ripple's current business segments and offer its clients regulated fiat and cryptocurrency services in the US.

Segment Insights:

By Type

The type group is dominated by Central Bank Digital Currencies (CBDCs). With a value linked to the official currency of the issuing nation, CBDCs are a digital version of central bank money that is freely accessible to the general public. Similar to cryptocurrencies, CBDCs are run and issued by the government, unlike decentralized cryptocurrencies. Central banks now have a chance to strengthen local governance over increasingly global payment networks and promote strategic payment innovation due to CBDCs. Furthermore, central banks see CBDCs as a stabilizing foundation for regional digital payment networks, and their creation could improve financial inclusion, reduce transaction costs, and boost payment system security and transparency.

By Offering

The offerings segment has the hardware as the dominating segment. The hardware products available in the digital currency market comprise a range of tangible tools and parts utilized in cryptocurrency ecosystem operations including mining, storing, and processing transactions. The infrastructure and functioning of digital currencies depend heavily on hardware, which provides the instruments needed for safe transactions, mining, and storage. Mining, which entails solving complex mathematical puzzles to validate transactions and safeguard the network, requires hardware. The application is the one form of mining equipment called Specific Integrated Circuits (ASICs) that is crucial to mining since it provides the computing power required to manage transactions and protect the blockchain network.

Regional Insights:

North America is dominating significantly throughout the projection period and is currently the largest stakeholder in the global digital currency market. Strong digital payment labor witnessed in the area and a one-chosen crypto buying route transacted through sites such as PayPal will be powering the regional digital currency companies. In recent years, digital currencies have grown in popularity in both Canada and the United States from an increased level of institutional and retail investor activity. In February 2021, the first such product came to the Canadian cryptocurrency market when a Bitcoin exchange-traded fund (ETF) was launched on the Toronto Stock Exchange. This still important step reflects the increasing adoption and incorporation of crypto into legacy banking systems. Moreover, the increasing adoption of cryptocurrencies and wide application of this technology in numerous sectors including but not limited to banking, e-commerce, and tech will continue to provide clear market management in the world. These trends specify that consumers are becoming more attentive to and interested in digital currencies, which will contribute to their increased use in the years to come.

Segmentation:

By Type

• Central Bank Digital Currencies
• Cryptocurrencies
• Stablecoins

By Offering

• Software
• Hardware

By Process

• Mining
• Transaction

By End-User

• Banking
• Gaming
• Government
• Healthcare
• Trading
• Others

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Digital Currency market in the world.

2. Use PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Digital Currency market.

3. Leading company profiles reveal details of key Digital Currency market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Digital Currency market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Digital Currency Market?

• The growing adoption of distributed ledger technology drives the growth of the digital currency market.  

2) What would be the CAGR of the Global Digital Currency Market over the forecast period?

• The Global Digital Currency Market is poised to grow at a CAGR of 12.64% from 2025 to 2032.

3) Which region will provide more business opportunities for the growth of the Global Digital Currency Market in the future?

• The North America region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Digital Currency Market?

• Apirone Ou, Bank of Canada, Binance, Circle Internet Financial Limited, Coinbase, European Central Bank, iFinex Inc., NOWPayments, Polkadot, ProBit Global Services Limited, Reserve Bank of India, Cryptomus, Ripple, Xapo Bank Limited, Others.

5) What are the segments in the Global Digital Currency Market?

• By Type, By Offering, By Process, and By End-User are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Digital Currency Market in 2032?

• The estimated revenue for the Global Digital Currency Market in 2032 is USD 17.01 Billion.