Digital Currency Market by Type, Offering, Process, Utility, Application

List of Tables

[195 Pages Report] The Digital Currency Market size was estimated at USD 1.81 billion in 2023 and expected to reach USD 2.03 billion in 2024, at a CAGR 12.64% to reach USD 4.17 billion by 2030.

The digital currency comprises an ecosystem of platforms, technologies, services, and products that facilitate the creation, exchange, storage, and circulation of digital currencies such as cryptocurrencies and central bank digital currencies (CBDCs). These currencies employ cryptographic principles, distributed ledger technology (DLT), and blockchain technology to ensure secure transactions and maintain the decentralized nature of the market. Key applications include cross-border remittances, payment processing systems, e-commerce transactions, online investments, supply chain tracking systems, and asset tokenization. Increasing adoption of digital currencies for financial transactions due to their borderless nature, higher transaction speeds, low transaction cost, and rising demand for decentralized finance (DeFi) solutions drive the use of digital currencies. In addition, efforts made by economies to launch CBDCs propel their usage worldwide. On the other hand, the lack of a uniform regulatory framework across different jurisdictions creates uncertainty for businesses in the digital currency space and poses a risk to market stability. Cyber attacks or hacks on wallets coupled with volatile prices hinder their adoption. However, the introduction of new digital currencies, advancements in supportive technologies, and the launch of virtual currencies by organizations are expected to proliferate market growth in the coming years.

KEY MARKET STATISTICS
Base Year [2023]	USD 1.81 billion
Estimated Year [2024]	USD 2.03 billion
Forecast Year [2030]	USD 4.17 billion
CAGR (%)	12.64%

Regional Insights

In the United States and Canada, digital currencies have gained traction over recent years as the U.S. has witnessed an influx in cryptocurrency investments from institutional investors and retail traders. Meanwhile, in Canada's cryptocurrency scene, the Toronto Stock Exchange launched the world's first Bitcoin exchange-traded fund (ETF) in February 2021. EU countries have been proactive in integrating digital currencies within their financial systems. The European Central Bank (ECB) is actively researching a digital euro for its member states. This initiative complements cash transactions while ensuring users' privacy and security. The Middle East has observed pilot projects exploring digital currency's potential across cross-border payments and trade finance sectors. For instance, Project Aber, a joint initiative by the UAE Central Bank and the Saudi Arabian Monetary Authority, tested a central bank-backed digital currency for use in financial settlements between the Kingdom of Saudi Arabia and the UAE using blockchains and distributed ledger technologies. Africa presents an exciting market for cryptocurrencies as it addresses issues such as financial inclusion among unbanked populations across the continent. China, Japan, and India are key players driving digital currency adoption in the Asia-Pacific region. The central bank in China, the People's Bank of China (PBOC), piloted its digital yuan initiative across several major cities in 2020. Japan has been at the forefront of cryptocurrency regulation and blockchain technology adoption, and India, on the other hand, has witnessed a surge in cryptocurrency investments despite regulatory uncertainty.

Market Insights

Market Dynamics

The market dynamics represent an ever-changing landscape of the Digital Currency Market by providing actionable insights into factors, including supply and demand levels. Accounting for these factors helps design strategies, make investments, and formulate developments to capitalize on future opportunities. In addition, these factors assist in avoiding potential pitfalls related to political, geographical, technical, social, and economic conditions, highlighting consumer behaviors and influencing manufacturing costs and purchasing decisions.

Market Drivers
- Growing adoption of digital payments and mobile wallets
- Government initiatives and efforts to introduce central bank digital currencies in economies worldwide
- Increasing inclination and demand for decentralized finance (DeFi) solutions

Market Restraints
- Volatility in digital currency prices and limited awareness among the population

Market Opportunities
- Integration of new digital currencies into payment apps enhancing usability
- Introduction and issuing of tokens as virtual currency by private organizations

Market Challenges
- Regulatory uncertainties and compliance challenges across regions and possible security risks

Market Segmentation Analysis
- Type: Higher potential for CBDCs due to their capability to cater to nationwide daily transactions
- Application: Increasing use of digital currencies for personal use with improving regulations and user-friendliness

Market Disruption Analysis
Porter's Five Forces Analysis
Value Chain & Critical Path Analysis
Pricing Analysis
Technology Analysis
Patent Analysis
Trade Analysis
Regulatory Framework Analysis

FPNV Positioning Matrix

The FPNV positioning matrix is essential in evaluating the market positioning of the vendors in the Digital Currency Market. This matrix offers a comprehensive assessment of vendors, examining critical metrics related to business strategy and product satisfaction. This in-depth assessment empowers users to make well-informed decisions aligned with their requirements. Based on the evaluation, the vendors are then categorized into four distinct quadrants representing varying levels of success, namely Forefront (F), Pathfinder (P), Niche (N), or Vital (V).

Market Share Analysis

The market share analysis is a comprehensive tool that provides an insightful and in-depth assessment of the current state of vendors in the Digital Currency Market. By meticulously comparing and analyzing vendor contributions, companies are offered a greater understanding of their performance and the challenges they face when competing for market share. These contributions include overall revenue, customer base, and other vital metrics. Additionally, this analysis provides valuable insights into the competitive nature of the sector, including factors such as accumulation, fragmentation dominance, and amalgamation traits observed over the base year period studied. With these illustrative details, vendors can make more informed decisions and devise effective strategies to gain a competitive edge in the market.

Recent Developments

Digital Rupee: How Central Bank Digital Currency (CBDC) is Expected to Boost Financial Inclusion

India recently announced pilots for its Central Bank Digital Currency (CBDC) called the 'Digital Rupee'. The pilot on retail CBDC transactions has seen over 1 million users and 262,000 merchants registering. Experts believe CBDCs can be a transformative catalyst, reshaping financial inclusion and providing a safer platform for economic activities. CBDCs empower the unbanked by granting them access to the formal financial system and offering benefits such as micro-transactions, financial freedom, increased savings, and proper banking frameworks. This technology can potentially bridge the digital and economic divide in our country, reducing disparities. [Published On: 2023-09-21]

Ripple Buys Crypto Infrastructure Startup in its Second Acquisition of 2023

Ripple has recently announced its acquisition of Fortress Trust, a startup specializing in crypto infrastructure. The primary focus of Fortress Trust is to facilitate the interaction between large enterprises and digital currencies while also holding a Nevada trust. This acquisition is expected to bolster Ripple's existing lines of business and provide its customers with regulated services for both fiat and crypto in the United States. [Published On: 2023-09-08]

Central Bank of Montenegro Signs Agreement with Ripple to Develop a Digital Currency Strategy and Pilot

The Central Bank of Montenegro has partnered with Ripple to create a strategy and pilot program for making the country's first digital currency a Central Bank Digital Currency (CBDC) or national stablecoin. This collaboration aligns with the CBCG's primary goals of digitizing financial services and improving financial accessibility for citizens of Montenegro. The project involves multiple stages, including identifying the digital currency or national stablecoin applications, simulating its circulation, analyzing its advantages and risks regarding payment availability, security, regulatory compliance, and safeguarding the rights and privacy of end users. The CBCG has selected Ripple to assist in launching its inaugural digital currency, leveraging its expertise and global payment solutions capabilities. [Published On: 2023-04-11]

Strategy Analysis & Recommendation

The strategic analysis is essential for organizations seeking a solid foothold in the global marketplace. Companies are better positioned to make informed decisions that align with their long-term aspirations by thoroughly evaluating their current standing in the Digital Currency Market. This critical assessment involves a thorough analysis of the organization's resources, capabilities, and overall performance to identify its core strengths and areas for improvement.

Key Company Profiles

The report delves into recent significant developments in the Digital Currency Market, highlighting leading vendors and their innovative profiles. These include Apirone OU, Bank of Canada, Binance, Bitfury Group Limited, BITMAIN Group, BitPay Inc., Blockonomics, Boxcoin, Circle Internet Financial Limited, Coinbase, Coinbase Global, Inc., CoinGate, Coinify ApS, Coinremitter Pte Ltd., CoinZoom, Inc., Cryptomus, Cryptopay Ltd., European Central Bank, iFinex Inc., NOWPayments, Nvidia Corporation, Paymium SAS, People's Bank of China, Polkadot, ProBit Global Services Limited, Reserve Bank of India, Riksbank, Ripple, Upbit Singapore Pte. Ltd., Wirex Digital D.o.o, and Xapo Bank Limited.

Market Segmentation & Coverage

This research report categorizes the Digital Currency Market to forecast the revenues and analyze trends in each of the following sub-markets:

Type
- Central Bank Digital Currencies
- Cryptocurrencies
  - Binance Coin
  - Bitcoin
  - Cardano
  - Dai
  - Dogecoin
  - Ethereum
  - Litecoin
  - Polygon
  - Ripple
  - Solana
  - Tether
Offering
- Hardware
- Software

Process
- Mining
  - Cloud Mining
  - Pool Mining
  - Solo Mining

Transaction
- Exchange
- Wallet

Utility
- Payment
  - Ecommerce & Retail
  - Media & Entertainment
  - Travel & Tourism

Remittance
Trading

Application
- Enterprise
- Government
- Personal

Region
- Americas
  - Argentina
  - Brazil
  - Canada
  - Mexico
  - United States
    - California
    - Florida
    - Illinois
    - New York
    - Ohio
    - Pennsylvania
    - Texas
- Asia-Pacific
  - Australia
  - China
  - India
  - Indonesia
  - Japan
  - Malaysia
  - Philippines
  - Singapore
  - South Korea
  - Taiwan
  - Thailand
  - Vietnam

Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom

Product Code: MRR-03548A2BA07F

1. Preface

1.1. Objectives of the Study
1.2. Market Segmentation & Coverage
1.3. Years Considered for the Study
1.4. Currency & Pricing
1.5. Language
1.6. Stakeholders

2. Research Methodology

2.1. Define: Research Objective
2.2. Determine: Research Design
2.3. Prepare: Research Instrument
2.4. Collect: Data Source
2.5. Analyze: Data Interpretation
2.6. Formulate: Data Verification
2.7. Publish: Research Report
2.8. Repeat: Report Update

3. Executive Summary

4. Market Overview

5. Market Insights

5.1. Market Dynamics
- 5.1.1. Drivers
  - 5.1.1.1. Growing adoption of digital payments and mobile wallets
  - 5.1.1.2. Government initiatives and efforts to introduce central bank digital currencies in economies worldwide
  - 5.1.1.3. Increasing inclination and demand for decentralized finance (DeFi) solutions
- 5.1.2. Restraints
  - 5.1.2.1. Volatility in digital currency prices and limited awareness among the population
- 5.1.3. Opportunities
  - 5.1.3.1. Integration of new digital currencies into payment apps enhancing usability
  - 5.1.3.2. Introduction and issuing of tokens as virtual currency by private organizations
- 5.1.4. Challenges
  - 5.1.4.1. Regulatory uncertainties and compliance challenges across regions and possible security risks
5.2. Market Segmentation Analysis
- 5.2.1. Type: Higher potential for CBDCs due to their capability to cater to nationwide daily transactions
- 5.2.2. Application: Increasing use of digital currencies for personal use with improving regulations and user-friendliness
5.3. Market Disruption Analysis
5.4. Porter's Five Forces Analysis
- 5.4.1. Threat of New Entrants
- 5.4.2. Threat of Substitutes
- 5.4.3. Bargaining Power of Customers
- 5.4.4. Bargaining Power of Suppliers
- 5.4.5. Industry Rivalry
5.5. Value Chain & Critical Path Analysis
5.6. Pricing Analysis
5.7. Technology Analysis
5.8. Patent Analysis
5.9. Trade Analysis
5.10. Regulatory Framework Analysis

6. Digital Currency Market, by Type

6.1. Introduction
6.2. Central Bank Digital Currencies
6.3. Cryptocurrencies

7. Digital Currency Market, by Offering

7.1. Introduction
7.2. Hardware
7.3. Software

8. Digital Currency Market, by Process

8.1. Introduction
8.2. Mining
8.3. Transaction

9. Digital Currency Market, by Utility

9.1. Introduction
9.2. Payment
9.3. Remittance
9.4. Trading

10. Digital Currency Market, by Application

10.1. Introduction
10.2. Enterprise
10.3. Government
10.4. Personal

11. Americas Digital Currency Market

11.1. Introduction
11.2. Argentina
11.3. Brazil
11.4. Canada
11.5. Mexico
11.6. United States

12. Asia-Pacific Digital Currency Market

12.1. Introduction
12.2. Australia
12.3. China
12.4. India
12.5. Indonesia
12.6. Japan
12.7. Malaysia
12.8. Philippines
12.9. Singapore
12.10. South Korea
12.11. Taiwan
12.12. Thailand
12.13. Vietnam

13. Europe, Middle East & Africa Digital Currency Market

13.1. Introduction
13.2. Denmark
13.3. Egypt
13.4. Finland
13.5. France
13.6. Germany
13.7. Israel
13.8. Italy
13.9. Netherlands
13.10. Nigeria
13.11. Norway
13.12. Poland
13.13. Qatar
13.14. Russia
13.15. Saudi Arabia
13.16. South Africa
13.17. Spain
13.18. Sweden
13.19. Switzerland
13.20. Turkey
13.21. United Arab Emirates
13.22. United Kingdom

14. Competitive Landscape

14.1. Market Share Analysis, 2023
14.2. FPNV Positioning Matrix, 2023
14.3. Competitive Scenario Analysis
- 14.3.1. Digital Rupee: How Central Bank Digital Currency (CBDC) is Expected to Boost Financial Inclusion
- 14.3.2. Ripple Buys Crypto Infrastructure Startup in its Second Acquisition of 2023
- 14.3.3. Central Bank of Montenegro Signs Agreement with Ripple to Develop a Digital Currency Strategy and Pilot
14.4. Strategy Analysis & Recommendation

15. Competitive Portfolio

15.1. Key Company Profiles
15.2. Key Product Portfolio