Technavio Predicts Continued Growth and EMEA Domination of Cryptocurrency Market
Global technology research and advisory company Technavio has stated in a recent report that the global digital coin market is expected grow at a CAGR of more than 7% during the forecast period. Noted top players in the global cryptocurrency market highlighted in the report were Bitcoin, Ethereum, Ripple, Litecoin and Dogecoin.
In this report, Technavio covered the market outlook and growth prospects of the global digital coin market for 2016-2020. To calculate the market size, the report considered the total supply of digital coins of the top companies that operate from the key regions, including the Americas, APAC, and EMEA, the largest digital coin market. The report also presented the vendor landscape and a corresponding detailed analysis of the top vendors operating in the market.
With a market share of close to 50% in 2015, EMEA emerged as the largest market for digital coins. In Europe, the European Securities and Markets Authority has undertaken investigations of blockchain technologies and digital currencies. Concurrently, the intervention by the ESMA is expected to boost demand for various investment products, which include derivative products. Various market participants can monitor and analyse the development of virtual currencies to understand its scope beyond regular payment systems.
Bharath Kanniappan, a lead analyst at Technavio, explained: “The digital coin companies and financial professionals have organized workshops and seminars to create awareness about digital coins in the European markets. Such workshops have spread awareness about the advantages of digital coins, thus leading to its evolution in this market.”
The report also added that a workshop, Startup Europe, was established to coordinate the digital coin market, regulators, and government-funded researchers in European countries. The workshop seeks to understand the scope and application possibilities of digital currencies that are based on blockchain technology. Such applications include crowdfunding, micropayments, distributed exchanges, ticketing, smart property, property registry, and secure voting systems.
The US government is trying to revamp the monetary system with the help of digital currencies. The use of these may help to qualify users to make real-time transactions online. To that end, the US government is supporting the dollar-based monetary system so that customers can also make use of digital coins. This will save money as real-time transactions do not involve huge investment costs, and ensure privacy for users.
The report also forecasted that the US government will use digital coins to hedge against inflationary economies. The US customers can execute more efficient cross-border remittances during the forecast period, which may expand the scope of financial inclusion in the Americas.
APAC has high demand for payment technologies that process domestic and cross-border transactions. The adoption of faster payment technologies may drive banking and other financial institutions to leverage the digital coin platform, increasing the remittance flow and trading activities in APAC. It is expected that various stakeholders, such as sovereign nations and corporations in APAC, will leverage the presence of financial technology firms, increasing the scope of cryptocurrency in the financial services sector.
Bharath commented: “Ripple, a financial settlement infrastructure solution provider in Sydney, Australia, has generated a demand for online money transfer services. The firm has also helped increase the adoption of digital coin platform by users and small financial institutions,”