2021 has been a “Blockbuster Year” for cryptocurrency and blockchain – at least that’s what a new report by reputed accounting firm KPMG, states. According to the report, the size of fintech deals has been progressively increasing in the past few years. From the mere $5.4 billion industry that it was in 2020, fintech, blockchain and crypto are worth a whopping $30 billion today.
China’s digital Yuan has the ball rolling
One of the key contributors to this growth was the adoption of a country-wide digital currency app by The People’s Republic of China.
Earlier this year, the People’s Bank of China rolled out their new digital wallet – designed to be operated using a digital Yuan. The bank and the Government hope to make the digital Yuan, the primary currency for Chinese citizens in the near future. A project which has been in the making since 2014, the digital Yuan has already received acceptance from global giants like Alibaba and Tencent.
The pursuance of this digital payment method by one of the largest economies in the world, has strengthened investors belief in the power of fintech and blockchain. In fact, many countries around the world are actively considering the development of their own bespoke national digital currencies.
Increased acceptance from investors too
Banks aside, other key financial players, such as venture capital firms and private investors have been observed investing more in cryptocurrency and blockchain. In fact, VC investment reached $115 billion in 2021, a steep growth from the $53.2 billion in 2018.
Other financial institutions – such as KPMG – have begun investing in cryptocurrency as well – adopting them into their asset portfolios.