Cryptocurrency is gaining momentum amid COVID-19, with developing countries setting the trend: new yStats.com report.

Posted on: E-Commerce | Online Payment on April 08, 2021

The latest publication from Germany-based online research firm yStats.com, “Global Blockchain and Cryptocurrency Market 2021” provides insights into the current state and advances of the blockchain and cryptocurrency markets worldwide. Among other findings, the publication reveals that despite the concern regarding cryptocurrencies’ volatility, governments, the financial industry, private sector and consumers are increasingly allocate their assets into the new currency.

Cryptocurrency and blockchain-enabled solutions are to accelerate by 2030

Even before the onset of the pandemic and especially during it, blockchain-technology was and is seen by many as “the new reality”: private sector companies change their business models to incorporate cryptocurrencies, banks introduce new crypto-offerings, governments become more and more open to the technology, and consumers increasingly invest in cryptocurrencies. According to the new yStats.com report, blockchain-based technologies are expected to represent a significant share of the global GDP by 2030, elevating it by close to USD 2 trillion. Similar to the way cryptocurrencies are presently used, much of this growth is to come from provenance, payments, and digital identity, but by 2030 the magnitudes are forecasted to be remarkably higher.

Private sector and banks have high hopes regarding cryptocurrency and its future development

In many countries worldwide, businesses have increased their trust in cryptocurrencies, so that globally, the share of enterprises that put blockchain technologies into production increased by 16 percentage points in March 2020, compared to the same period a year before. Furthermore, on average, eight in ten enterprise representatives agree that in the next five to ten years digital assets will become a strong alternative to fiat currencies, despite some risks stemming from cryptocurrency volatility. Additionally, banks are keeping an eye on the blockchain technology. The year 2020 saw major banks stepping into the market. Moreover, central banks of Europe, China, and others are experimenting with blockchain technologies, despite some lingering concerns. Nevertheless, according to the new publication by yStats.com, businesses and financial institutions are finding solutions that may help to mitigate the risks.

Major online retail and payments players see opportunities in blockchain for their businesses

Enjoying the first-mover advantage on the US cryptocurrency market, Square has seen its revenues from Blockchain increase by three-digit percentages during 2020, despite the net profits still not being as high. At the same time, in 2021, PayPal stated its intention to expand cryptocurrency capabilities, Walmart is eyeing creation of a complete blockchain-based ecosystem, and Amazon and Apple announced plans to launch their digital currency projects. Furthermore, Visa and Mastercard are keeping up by expanding their offerings which are to include cryptocurrencies in some form. Overall, the incumbents are actively opting for the blockchain-backed currencies, however, the yStats.com publication cites forecasts of the introduction of several newcomers in the field, also.

Developing countries are setting the tone for future work with cryptocurrencies

Africa offers many opportunities for the investors interested in blockchain technology. The region still lacks an appropriate infrastructure, but as the population is used to alternative means of payments due to the popularity of mobile money, remittances flows are high, and local currencies are sometimes unstable, there is a chance for Africa to be a trendsetter in the cryptocurrency arena in the future. On the other hand, the Middle East  is only slowly making steps forward in terms of cryptocurrency adoption, as in many countries in the region this activity is forbidden by regulators. Nevertheless, the UAE and Bahrain stand out and are open to the new technology. Meanwhile, according to a report cited by yStats.com, in Asia, China is a clear leader in cryptocurrency adoption, however, Vietnam, India, Thailand, Pakistan, and among others, are in the top 20 countries by cryptocurrency adoption.

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