Investment in the crypto space skyrocketed in 2021. Globally, crypto projects attracted more than $30 billion, up from $5.4 billion in 2020.

In its Pulse in Fintech report, KPMG notes an “incredible increase in recognition of the potential of cryptocurrencies in fintech.

According to the ‘Big Four’ multinational accounting firm, 2021 saw a growing interest in crypto and blockchain in the fintech world. Established institutional players explored what roles cryptocurrencies can play in financial services.

During 2021, investors began to truly get used 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 broad spectrum of blockchain opportunities, the firm said. Regulatory technology and cybersecurity are just some of the industries that are exploring crypto solutions.

However, the year saw a huge divergence in how different jurisdictions regulate crypto assets. While most Western countries have welcomed the innovation, China has banned all crypto assets. India took steps to do the same, introducing a bill that would ban crypto payments.

Outlook 2022

By 2022, the report predicts a continued rise in interest and investment in the crypto space, from both retail and institutional investors. KPMG Managing Director Brian Heaver says that:

This was arguably one of the most significant years for crypto in terms of retail adoption and investment.

The report also predicts increased collaboration between crypto businesses and regulators. Stablecoin issuers will also start to be more transparent with reserves, the report suggests.

There are an incredible number of companies trying to do a lot of things in the cryptocurrency and blockchain space right now, and while we don’t know where all of their efforts are going to land, there is a lot of curiosity and interest in the possibilities.

Web 3 technology will also be in the spotlight, with companies scrambling to figure out how blockchain could pull it off. Web 3 refers to a version of the Internet based on decentralized protocols.

However, investors are 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. The company recently made headlines by adding Bitcoin and Ethereum to its balance sheet.

The firm said the investment reflects its belief in the institutional adoption of crypto and blockchain.

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