A recent report by a leading multinational firm highlighted how the crypto and blockchain space attracted the highest amount of fintech investments across Canada in 2023.
KPMG, one of the ‘Big Four’ global accounting organizations, has revealed numbers that bode extremely well for the crypto sector. According to the firm, Canada’s crypto and blockchain space was the top recipient of fintech investments in 2023. It even comes when the overall fintech industry is facing a worldwide slowdown.
According to the report, fintech investments fell below $1 billion to $920 million across 109 deals in 2023. The report stated how global deals fell by 65% and 73% by value. At the same time, the crypto and blockchain sectors emerged as a clear winner among several industries. Moreover, thirty-one deals happened in the crypto sector, with eighty-three venture capital investments.
The report said crypto investment deals were the highest for two years in a row. KPMG Partner Edith Hitt said, “The approval of a Bitcoin ETF in the United States could help boost investment in Canadian fintechs and help drive new technological advancements in the digital assets space.”
meanwhile, Hitt said a blockchain infrastructure firm got the biggest investment in 2023. In his opinion, if a digital dollar or a central bank digital currency (CBDC) gets approvals in Canada, the trend could continue. A CBDC could become the ‘growth catalyst’ for more crypto investments, said Hitt.
In May 2023, the Bank of Canada invited opinions for a digital Canadian dollar. Although the central bank hasn’t revealed more details, plans for a CBDC could be underway. Crypto regulatory rules in Canada have also seen an overhaul recently. Authorities mandated more transparency in disclosure rules for crypto holdings in Canada.
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