Few decades ago, online banking was not something people had imagined. But today, we can’t imagine a life without it. Now if we were to follow the same example, crypto banking too is following the same growth trajectory. Today, not so common, but industry experts believe that it has the potential to grow at 6.30% in coming years.
According to a Data Bridge Market Research report, the cryptocurrency banking market is expected to witness exponential growth at 6.30% rate from 2020-2027 .
The forecast has been made considering diverse factors such as global cryptocurrency banking market by key industry domains (exchanges, wallets, payments and mining), services currently available (loan, credits, payments, clearance and settlement system, fundraising, securities, trade finance), types of cryptocurrencies (Bitcoin, Ethereum, Dash, Monero, XRP, Litecoin, etc), categories of application (trading, payment, remittance) and overall industry trends.
North America, Asia-Pacific to Shine
The findings indicate that North America will dominate the cryptocurrency banking market due to the rising usages of wallet by its people, while the Asia-Pacific market will also witness impressive developments in the forecast period of 2020-2027, thanks to factors like technical innovation, expansion of internet and entry of new market players.
Rise of Crypto Banking
Certain factors in recent times have led the crypto banking sector to gain unprecedented momentum. From OCC’s green signal to American banks for handling crypto custody of their clients to Stablecoins representing fiat currency like the one launched by JP Morgan Coin only last year, encouraging market movements such as these are acting as a catalyst in the crypto transition of banks.
In 2014, the US declared that although it does not consider cryptocurrency to be legal tender, it is deemed property for tax purposes. Six years later, Federal Reserve Governor Lael Brainard announces ongoing research in the potential development of an American central bank digital currency (CBDC) or a Digital Dollar. Moving on, recently, Basler Kantonalbank (BKB), Switzerland’s 8th largest bank has also entered the crypto space through its subsidiary, Bank Cler. With more conventional banks realising the market potential of crypto banking, the projected figures do not seem difficult to achieve.
