KPMG Report Shows Growing Interest in Crypto Investment for Hedge Against Fiat Debasement
Recent findings by KPMG reveal an increasing trend among investors to consider cryptocurrencies as a viable option to safeguard against the devaluation of traditional fiat currencies. The report specifically looks at the Canadian market, highlighting the growing acceptance and adoption of digital assets in the region.
Key Insights from the KPMG Report
- In 2023, 50% of financial service providers in Canada offered crypto asset services, a significant uptick from 41% in 2021.
- Approximately 39% of Canadian institutional investors had exposure to cryptocurrencies in 2023, up from 31% in 2021.
Crypto Acceptance in Canada
According to Kareem Sadek, an Emerging Technology Risk leader at KPMG, the growing interest from Canadian institutional investors can be attributed to two primary factors:
- Supportive Regulatory Environment: Canada has been at the forefront of establishing regulations that foster innovation in the crypto space, such as approving the first Bitcoin and Ethereum exchange-traded funds.
- Hedge Against Fiat Debasement: With the backdrop of increasing national debt and inflation, institutions in Canada view cryptocurrencies as a reliable hedge against currency devaluation.
Implications for Investors
Kunal Bhasin, a partner at KPMG in Canada’s Digital Assets practice, underscores the broader implications of this shift towards crypto assets for investors:
- Debasement Hedge: Cryptocurrencies are increasingly seen as an investible alternative asset class that can serve as a hedge against the depreciation of traditional currencies.
- Store of Value: As traditional financial markets face uncertainties, institutions are turning to cryptocurrencies as a stable store of value.
Takeaway for Crypto Investors
As the global financial landscape continues to evolve, institutional interest in cryptocurrencies is on the rise. With innovative regulatory frameworks and a growing recognition of cryptocurrencies as a credible investment option, the crypto market presents new opportunities for investors to diversify their portfolios and mitigate risks.
Hot Take: Embracing Crypto as a Hedge Amid Economic Uncertainties
Exploring the potential of cryptocurrencies as a hedge against fiat debasement and economic challenges can offer investors a strategic advantage in today’s ever-changing financial ecosystem.
Sources:
By
By
By
By
By