By David Drake Cryptocurrencies have captured the attention of a growing number of companies and institutions. The Dutch audit firm, KPMG, is among the latest firms to focus on cryptocurrencies. As one of the leading four global audit firms, KPMG launched a report that clearly shows digital assets are worth considering, but insist that institutionalization is key to their success. The utilization of blockchain and token transactions made KPMG believe that the tokenization will shape the global economy moving forward. For KPMG experts, tokenization will be one of the most impactful innovations powered by cryptocurrencies in the coming years. According to the report, digital currencies are capable of revolutionizing the financial sector by creating an open system. The Big Question Such a system would be free of centralized control, provide wide access to financial resources as well as affordable and faster payment solutions that connect people anywhere. Acknowledging ... Read More »
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Government vs Industry Players: What Role Does Each Have in Bringing Institutional Capital to the Crypto Market?
By David Drake Cryptocurrencies are becoming essential to the global market. According to KPMG, they are indeed vital, but will take time before they reach their full potential. Currently, the crypto market is primarily speculation-driven as retail investors choose startups based on their ability of their crypto product to add value. Because of their nature and unpredictability, KPMG suggests virtual currencies will need the input of institutional investors to flourish in future. Institutional investors such as hedge and grant funds are seen as key to contributing to the stability of digital currencies. They are likely to address inequity in the cryptomarket by allowing large volume trading without causing a crash in exchanges as recently witnessed in price drops. Over the years, institutional investors have steered clear of cryptocurrencies due to their unpredictability. However, as the potential of virtual currencies increases, investors are expanding their asset portfolios to include ... Read More »
By David Drake KPMG, a Big Four Audit Corporation, issued a report on last month agreeing, to a large extent, with the sentiments of other bullish investors that are already circling. According to the company, ignoring cryptocurrencies now is somewhat an impossibility. While institutional investors have remained on the fence regarding this nascent asset class, KPMG, in its 42-page long report, stated that this risk-averse group will likely embrace cryptocurrencies. For this company, it’s no longer a matter of whether or not the big players will hop on board. It is more of what governments and other key industry players should do to make this happen. The Necessary Action One of the major reasons institutional investors have not been keen to test the waters is the wide scale scamming of millions of dollars in funds. Many exchanges still operate under unregulated schemes as governments struggle to adapt to ... Read More »
By David Drake Crypto-assets are worth paying attention to, according a report recently released by KPMG. The audit firm points out that crypto-assets have the potential to solve some of the challenges that current economies face but must first attract institutional participation. The report argues that institutions, such as exchanges, fintech companies, banks, payment providers, broker dealers, and others need to be involved in the cryptocurrency industry to ensure trust, utility and scalability is reached in the global financial system. But for such synergy to be achieved, what role should industry players and governments play? 1. Regulation One of the most significant boosts that governments can offer the cryptocurrency industry is developing clear, crypto-friendly regulation. Companies involved in crypto-assets recognize the role that governments have in protecting customers through regulation within their jurisdictions. However, there is need to have progressive regulation tailored to the industry as opposed to ... Read More »