According to KPMG’s report titled ‘Pulse of Fintech H1’21’, investment in blockchain and crypto in the first half of 2021 was more than 100% of all investments in blockchain and crypto in 2020.
According to the report, investments in crypto have soared past the previous annual record high set in 2018.
The report said, “Key Q2’21 highlights in the crypto and blockchain space include: Evolving nature of investors. As the blockchain and crypto sector has matured, so has the nature of its investors.
“In H1’21, a significant amount of institutional money flowed into the crypto space, highlighting the broadening of the investor base.
“Investor awareness and knowledge of the sector is growing with investors now having a much better understanding not only about crypto assets, but also the operational and procedural side of crypto – from custody and storage to storekeeping and the competitiveness and maturity of service providers. Increasingly Hot VC market VC investment was very strong in the blockchain and crypto space.”
The report also said that numerous companies raised $100m+ funding rounds in the first half of the year, including BlockFi ($350m), Paxos ($300m), Blockchain.com ($300m), and Bitso ($250m).
China is leading the Central Bank Digital Currency drive with its testing (the ‘digital renminbi’, digital yuan, or e-CNY), the reported added.
In the first half of 2021, China expanded its pilot project to include salary payments for some workers in China’s Xiong’an New Area, the payment of subway fares, and the exchange of digital and physical currencies at two banks in Beijing.
“Cryptocurrencies continued to be a critical focus for some regulators, with widespread differences between jurisdictions as to acceptance and use.
“During H1’21, China banned financial institutions and payments companies from providing cryptocurrency-related services, while El Salvador announced that Bitcoin would become legal tender in the country as of September 7, 2021,” the report added.
According to a report by Crypto.com, the number of global crypto users reached 221 million in June 2021, doubling the 2020 number.