Investments in the crypto space skyrocketed in 2021. Globally, crypto projects attracted over $30 billion, up from $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 accounting firm “Big Four”, 2021 has seen a growing interest in crypto and blockchain in the fintech world. Established institutional players have explored the 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.
Additionally, there is growing interest in the wide range of blockchain opportunities, the company said. Regulatory technology and cybersecurity are just a few of the industries that 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.
Outlook 2022
For 2022, the report predicts a continued increase in interest and investment in the crypto space, from both retail and institutional investors. KPMG Chief Executive Brian Heaver says:
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 being 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
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 company said the investment reflects its belief in institutional adoption of crypto and blockchain.
