The cryptocurrency market - Italy

The cryptocurrency market has witnessed substantial growth and evolution since 2020. Globally, the market size was estimated at $4.67 billion in 2022, with projections for expansion at a compound annual growth rate (CAGR) of 12.45 percent from 2023 to 2030. Bitcoin maintained its prominence despite facing competition from alternative cryptocurrencies and blockchain projects, which experienced significant investment, particularly in the realms of payment services and trading platforms. Demand for cryptocurrencies increased, driven by factors such as the potential for high returns and the appeal of technological innovation. The COVID-19 pandemic notably impacted the market, with the value of Bitcoin soaring by 540 percent from the outbreak to March 2021, indicating a growing trend of viewing cryptocurrencies as a hedging mechanism against market uncertainties. Moreover, geopolitical conflicts like the Russian-Ukrainian war further influenced cryptocurrency transactions and showcased the digital assets' capability to preserve wealth amidst currency devaluation. In Italy, the cryptocurrency market experienced a unique shift, with corporate blockchain investments reaching 42 million euros in 2022, a 50% increase compared to 2021. Italian cryptocurrency adoption gained momentum, with a 23 percent spike in adoption rates despite a challenging year marked by the so-called "crypto winter.

Emerging Italian Appetite for Crypto Investments

In recent years, Italy has witnessed a burgeoning interest in the world of cryptocurrencies, with both the young and old generations becoming more involved. The Italian market has seen considerable growth, with a surge in the number of blockchain projects and a rising trend in cryptocurrency adoption. Despite facing what is referred to as the 'cryptowinter' in 2022, Italy observed an astonishing jump in corporate Blockchain projects. Investment within this sector climbed remarkably by 50%, amounting to an impressive figure hovering around €40 million. This uptick reflects a significant turn towards blockchain technology, with financial and insurance domains taking the lead, followed closely by retail and fashion industries. The Italian cryptocurrency landscape is characterized by a strong presence of investors over the age of 40. These individuals account for approximately half of the total balance of legal currencies, as well as nearly half of the conversions from legal to virtual currencies. The youth are not far behind, particularly those under 40, who display an active engagement in cryptocurrency transactions. It's noteworthy that a sizeable portion of these investors falls within an income range of €10,000 to €39,000, and most have achieved at least a high school or a bachelor's degree, indicating a medium to high degree of financial literacy.

The Italian market has opened up to a variety of cryptocurrencies. While Bitcoin still holds a significant place in investment portfolios, its dominance plummeted from 70% to just 40% in early 2022. Alternative coins, known as altcoins, now make up the majority of the market. Ethereum, in particular, stands out for its substantial reduction in energy consumption and is one of the most adopted cryptocurrencies in Italy. The trend of digital assets investment in Italy continues to rise, with between 12 and 14 million Italians expressing an interest in purchasing cryptocurrencies now or in the future. Among these digital offerings, NFTs, though less popular, have also piqued the interest of about 9% of the Italian population, with a focus on digital artworks and collectibles. Several factors drive the Italian populace towards cryptocurrencies. Primarily, the potential for high gains is a significant motivator. Investment portfolio diversification also plays a critical role, as Italians seek to spread their financial risks by adding cryptocurrencies to their assets. Additionally, the technological innovation underlying these digital currencies endows them with a revolutionary allure and the potential to transform traditional finance sectors. On the geographical front, a majority of Italian cryptocurrency investors are concentrated in the northern regions, accounting for nearly.

Prominent Italian Companies Shaping the Cryptocurrency Landscape

The Italian cryptocurrency market is home to several innovative and influential players who are reshaping the world of digital finance. These companies are not only significant due to their involvement in the industry but also due to their contributions to the development and adoption of blockchain technology and cryptocurrency services within Italy and beyond. Here's a closer look at some of the key market players making waves in the sector:

• Amaris is S.r.l: The Technology and Management Consulting Leader Established in 2007 with a global presence including an office in Turin, Italy, Amaris is an international consulting group specializing in technology and management. The company stands out with a strong focus on information technology consulting, dedicating a significant portion of its resources (70 percent) to blockchain technology. Amaris plays a critical role in guiding traditional businesses through digital transformation, leveraging the power of blockchain for enhanced transparency and efficiency.
• Checksig S.r.l: The Secure Investment Partner Checksig, with operations since 2019, is carving out a niche in the crypto custody space. As a professional investment partner in Bitcoin and other cryptocurrencies, Checksig offers a trustworthy platform for managing and safeguarding digital assets. By catering to both private traders and institutional investors, Checksig provides robust and scalable solutions, including corporate treasury allocations and strategies that integrate cryptographic assets into the financial portfolios of businesses.
• Conio S.r.l: The Fintech Innovator Conio, a fintech company founded in 2015, has made a significant impact on the accessibility of digital assets. Participated by notable entities like Poste Italiane and Banca Generali, Conio has developed the first multi-signature Bitcoin Wallet in Italy. The company's mission goes beyond the retail market, as it also empowers major banks and financial institutions to enter the digital asset space with its advanced technology solutions.
• Young Platform S.p.a: The Youthful Visionaries of Crypto Exchange Young Platform, a startup born from the ambition of six University of Turin computer science alumni, has managed to create the first all-Italian cryptocurrency exchange. Since its inception in 2018, the platform has simplified the process of buying and selling Bitcoin and other cryptocurrencies. Optimized for ease of use, it has attracted a broad user base. Alongside its exchange services, Young Platform offers a professional trading platform and engaging apps that enable users to gain cryptocurrencies through play—a concept that resonates particularly well with the younger, tech-savvy generation. 

Inforamtion

• Number of pages : 30 pages
• Format : Digital and PDF versions
• Last update : 01/12/2023

Summary and extracts