As Bitcoin (BTC) and altcoins have taken a breather from ever making new highs, the market sentiment appears to be bleak since early 2022. The coming months.
The multinational professional services network KMPG has released its semi-annual report, Pulse of Fintech, which tracks and analyzes developments and investments in the financial technology sector. The report highlighted the most notable developments in key regions such as the Americas, Asia Pacific, Europe, the Middle East and Africa, and noted the “increasing interest” in crypto and blockchain over the past year.
Although the scope of the report covers a broader context, cryptocurrency and blockchain remain one of the main topics. Here are the key tips from KPMG’s Pulse of Fintech report.
Over $30 billion in investment has been directed to crypto and blockchain
From $5.5 billion in 2020, investment in cryptocurrency and blockchain has grown to more than $30.2 billion in 2021. This shows that many companies have realized that cryptocurrency and its technologies can play a potential role in modern financial systems.
Brian Heaver, CEO of KPMG, believes that 2021 is a very important year for cryptocurrencies when it comes to adoption.
“There are now an incredible number of companies trying to do a lot of things in crypto and blockchain, and while we don’t know where all their efforts will land, there is a lot of curiosity and interest in the possibilities.”
RegTech Focuses on Cryptocurrency Despite Transformation in Asia Pacific Region
Despite China’s outright ban on cryptocurrencies, technology that helps regulate cryptocurrency has been a “relatively hot investment area” according to KPMG. The company anticipates that there may be more investment in regtech solutions in the future, with a focus on cryptocurrencies.
This may also come to Europe, according to Fabiano Gubo, head of global RegTech at KPMG International.
“While the United States continued to attract the vast majority of RegTech investment, Europe is well positioned for growth in 2022.”
Related: Global crypto adoption may soon reach Hyperbuoyancy Point: Wells Fargo Report
Blockchain facilities are on the rise
In 2021, as investors became more familiar with the blockchain, interest in various use cases also increased. According to KPMG, the “world of blockchain usability” will expand in 2021. This year has generated increased interest in a wide range of blockchain applications, including interdisciplinary use cases for data, research, and analysis.
For this reason, the company also anticipates that the cryptocurrency will attract “investors of all kinds,” including private investors as well as corporate and institutional investors due to the increase in use cases.
Cryptocurrency investment from Singapore has grown more than tenfold
As previously reported by Cointelegraph, crypto investment in Singapore has grown exponentially in 2021. Last year, the global cryptocurrency hub recorded $1.48 billion in crypto-focused investments. This exceeds the previous record for 2020 of $110 million. Cryptocurrency investments in the region accounted for 5% of the total global investment in cryptocurrency in 2021. It also accounts for a third of all investments in the fintech sector across the country.
Anton Ruddenklau, head of financial services at KPMG Singapore, believes that Singapore has attracted investors who were eyeing China but were sidelined by the cryptocurrency ban.
“Singapore and India could be big winners on the investment front as investors and companies who might have gone to China look for opportunities elsewhere in the region.”