March 27, 2024
Latest Cryptocurrency News

Crypto Dominates Canadian Fintech Investments for Two Consecutive Years

KPMG released a Canadian fintech report on February 6, emphasizing that despite a substantial decline in deal volumes and values in 2023, cryptocurrency still maintains its leading position. The crypto sector maintained its prominence by boasting 31 deals, surpassing other segments in fintech, as reported. The software-as-a-service industry ranked second with 24 deals, while the artificial intelligence and machine learning sector secured 15 deals.

Edith Hitt, a partner at KPMG, noted in the report that the sustained interest in crypto-related fintech projects was influenced, in part, by expectations surrounding the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission.

“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.”

Edith Hitt, KPMG partner

Hitt highlighted a significant fintech investment in 2023, pointing to a blockchain infrastructure firm, signaling a growing interest in the technology within the Canadian region. She suggested that investors might be forward-thinking, considering the possibility of a central bank digital currency (CBDC) becoming a reality in Canada.

According to Hitt, if a CBDC is implemented in Canada, blockchain technology could serve as the essential infrastructure to support the system, acting as a catalyst for further growth in the Canadian fintech ecosystem.

Despite the mention of a potential CBDC, doubts linger about its adoption in Canada. In August 2023, a Bank of Canada discussion paper raised concerns about the challenges of CBDC adoption within the country, noting that consumers might lack a compelling incentive to use a CBDC, given the absence of barriers to traditional financial services.

A survey on November 30, 2023 supported the central bank’s findings, revealing that individuals aware of CBDCs were more hesitant to embrace them compared to those unfamiliar with the technology.

Image by Freepik

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