08 Feb Global Crypto Investments Soared 450% in 2021: KPMG Reports
Investment in the crypto space soared in 2021. Globally, crypto projects attracted over $30 billion, compared to $5.4 billion in 2020.
In its Pulse in Fintech report, KPMG points to an “incredible increase in recognition of crypto’s potential in fintech.
According to the multinational ‘Big Four’ accounting firm, 2021 saw a surging interest in crypto and blockchain in the fintech world. Established institutional players explored what roles crypto can play in financial services.
During 2021, investors began to get truly acclimated to the blockchain space — not only seeing the potential value it offers today, but also opening up to the possibilities for tomorrow.
Moreover, there’s growing interest in the broad spectrum of blockchain opportunities, the firm said. Regulation tech and cybersecurity are just some of the industries which are exploring crypto solutions.
However, the year saw a vast divergence in how different jurisdictions regulate crypto assets. While most western countries welcomed innovation, China banned all crypto assets. India took steps to follow suit, introducing a bill that would ban crypto payments.
For 2022, the report predicts a continued rise in interest and investment in the crypto space, both from retail and institutional investors. KPMG’s managing director Brian Heaver says that:
This was arguably one of the most significant years ever for crypto in terms of retail adoption and investment.
The report also predicts increased collaboration between crypto firms and regulators. Stablecoin issuers will also start to be more transparent with reserves, the report suggests.
There’s an incredible number of companies trying to do a lot of things in the crypto and blockchain space right now — and while we don’t know where all their efforts are going to land, there’s a ton of curiosity and interest in the possibilities
Web 3 tech will also be in focus, with firms scrambling to discover how blockchain could make it happen. Web 3 refers to a version of the internet built on decentralized protocols.
However, investors are still very likely to see continued volatility in the space. Crypto markets are still evolving and in the testing phase.
KPMG and Crypto
KPMG is a global network of professional firms providing audit, tax, and advisory services. Recently, the company made news by adding Bitcoin and Ethereum to its balance sheet.
The firm said that the investment reflects its belief in the institutional adoption of crypto and blockchain.
Post is imported from RSS feed, by one of our guest editors. G6 does not edit or moderate the content. G6 is not responsible for your actions. No rights owned by G6. To remove the post, please email us at [email protected]