Global Fintech’s investment in cryptocurrency and blockchain will fall to 23.1 billion US dollars in 2022

It is reported that the latest report of KPMG shows that the total investment in UK’s financial technology fell by more than 50% in 2022, and the investment in UK’s financial technology fell from 39.1 billion US dollars in 2021 to 17.4 billion US dollars in 2022. In 2022, the total investment in global financial technology fell to $164.1 billion in 6006 transactions. Payment remains the strongest area of global financial technology investment, with an investment of $53.1 billion, compared with $57.1 billion in 2021. In contrast, the investment in cryptocurrency and blockchain has dropped from US $30 billion in 2021 to US $23.1 billion in 2022. The decline in the second half of 2022 was particularly significant because the review in this area increased significantly after the collapse of Terra (Luna) in May and the bankruptcy of FTX in November.

Interpretation of this information:

The latest report from KPMG reveals that the investment in financial technology in the UK has decreased by more than 50% in 2022, compared to 2021. The drop is significant as the total amount invested in fintech in the UK fell from $39.1 billion in 2021 to $17.4 billion in 2022. Globally, the total investment in fintech reached $164.1 billion across 6006 transactions. Payment technology remains the strongest area of investment, with $53.1 billion invested, compared to $57.1 billion in 2021. In contrast, investment in cryptocurrency and blockchain has decreased from $30 billion in 2021 to $23.1 billion in 2022. The decrease became more striking in the second half of the year as the review in this area increased significantly following the collapse of Terra (Luna) in May and the bankruptcy of FTX in November.

The drop in investment in fintech in the UK might be due to several factors, including the uncertainty of Brexit and the ongoing COVID-19 pandemic. The pandemic has challenged the existing business models of fintech companies, and investors might be more cautious, preferring more established firms. Moreover, some may have delayed their investments, awaiting a recovery in the post-pandemic economy. On the global scale, the decline in investment in cryptocurrency and blockchain may be attributed to the increased scrutiny in this field following two significant failures, albeit for different reasons. The collapse of Terra and the bankruptcy of FTX may have revealed weaknesses in the profitability, security, or regulatory compliance of those firms, leading investors to be wary of the industry as a whole.

In conclusion, this KPMG report signals a considerable drop in investment in fintech, both globally and in the UK, with payment technologies retaining their popularity. The decline in the cryptocurrency and blockchain area of investment is striking, likely due to the aftermath of two significant failures, highlighting the challenges of this sector.