Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: Research
World leading countries by Foreign Direct Investment
IMF Blog | Carlos Sánchez-Muñoz, Silvia Matei, and Kristy Howell | Dec 16, 2021
A Japanese automobile manufacturer builds an assembly plant in Mexico. An Italian software company opens a sales office in Kenya to reach the Kenyan market with their services. A large Australian mining company acquires a smaller Angolan one for diversification.
All are examples of foreign direct investment where a business decision is made to somehow take a stake or interest in a company by an investor located outside its borders.
See: Canada Partners with the European Commission to Examine Use of Digital Credentials
According to the latest results of our Coordinated Direct Investment Survey , and as shown in our Chart of the Week, the world’s top ten recipients of foreign direct investment by end-2020 were the United States, the Netherlands, Luxembourg, China, the United Kingdom, Hong Kong SAR, Singapore, Switzerland, Ireland, and Germany. Total reported foreign direct investment positions increased by $2.2 trillion—or six percent—from 2019 to 2020 (among economies that reported data for both 2019 and 2020).
Despite the uncertainties created by the COVID-19 pandemic, the increase in foreign direct investment positions is largely in line with the average annual increase over the past five years. Foreign direct investment in the reporting economy is also called inward direct investment.
The surge from 2019 to 2020 was led by increases in Europe and Asia Pacific. In Europe, the United Kingdom and Germany topped the list, accounting for 18 percent and 15 percent, respectively. In Asia Pacific, the increase was mainly driven by China. In fact, China showed the largest reported increase in both inward and outward direct investment worldwide. At the same time, foreign direct investment positions in Africa decreased slightly from 2019, mostly driven by lower positions in Nigeria.
See: KPMG Report: Canada attracts record $4.8 billion in fintech investment in H1’21: how high can it go by year end?
The United States took the leadership position as the largest recipient of foreign direct investment in 2019 and consolidated that position in 2020, mainly driven by higher direct investments from Japan, Germany, and the Netherlands. Together, these three economies accounted for most of the increase in foreign direct investment in the United States over the last three years.
Low-tax jurisdictions such as the Netherlands, Luxembourg, Hong Kong SAR, Singapore, and Ireland remained among the top direct investors and investee economies.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canada’s Low-Carbon Tech opportunity is now or risk another familiar story
BCG | Jason Green, Vinay Shandal, Wendi Backler, Keith Halliday, and | Dec 7, 2021
First the good news. A global study of private investment by Boston Consulting Group’s Center for Growth and Innovation Analytics found that Canadian ventures are well represented across 13 key low-carbon tech sectors. HTEC, Svante, Amp and Li-Cycle, for example, all attracted major funding over the past 12 months, making 2021 a banner year for private investment in the country’s low-carbon tech industry.
As much as US$21 trillion in new investment in both mature and newer low-carbon technologies will be needed globally over the next ten years.
In addition, Canadian low-carbon tech ventures are attracting a greater mix of investment in carbon capture, hydrogen, biofuels and climate analytics than their peers in Europe, the US or Asia-Pacific. BCG data shows they have claimed 8% or more of private investment worldwide since 2016. This is a hefty multiple of Canada’s roughly 2% share of the global economy. (See Exhibit 1 above.)
See: Decarbonizing Crypto: Getting to the facts of the decarbonisation discussion
However, Canada’s history with past tech shifts suggests that while our venture record is strong, our scale-up record is poor. After a generation of internet innovation, for example, Shopify is the only Canadian company on the list of scale-ups with market capitalizations of more than US$50 billion.
Historically, a major reason has been a lack of sustained attention and investment from Canada’s public and private sectors.
BCG research shows that 80% of Canadian private investment—across the corporate sector, venture capital, private equity and financial institutions—currently goes to ventures located outside Canada.
It will be a regrettable irony if Canada ends up importing key low carbon tech from other places instead of fanning a booming economy in an area where we have already cultivated significant home-grown advantage.
See: Are the new carbon offset ETFs too simplistic of a solution?
To help young businesses achieve scale, Canada’s public and private sector should take three steps.
- The first is for corporate Canada to ramp up venture investments and partnerships.
- The second step is for Canadian companies and government agencies to host more demonstration projects and at-scale deployments domestically.
- The final opportunity is to improve the innovation environment in Canada. To win the low-carbon future, we must get serious about addressing tax issues, low levels of corporate R&D, access to risk capital, and the brain drain of talent to the US.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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2023 The International Accounting Standards Board Research Forum—call for papers
IFRS | Dec 13, 2021
The International Accounting Standards Board (IASB) and its partnering journals for the 2023 Research Forum, Accounting in Europe and European Accounting Review, are issuing a call for papers on the theme of accounting for intangible assets. The goal of this Research Forum is to stimulate interaction between academics and non-academics, including standard-setters, investors, regulators, auditors and preparers of financial statements, through discussion of evidence-based papers that inform the standard-setting activities of the IASB.
See: Getting tangible about intangibles: The future of growth and productivity?
Submission Topics
Researchers are encouraged to contribute evidence on intangible assets from a variety of perspectives. Submissions on the following topics are particularly of interest:
- Recognition and measurement Internally generated assets
- Internally generated vs intangible assets acquired in business combinations
- New types of intangible assets (such as cryptocurrencies, emission rights, cloud computing)
- Disclosure in financial statements
- Internally generated and unrecognised assets
- Research and development expenditure
- Other information sources
- Management Commentary
- Sustainability reporting
- Related projects
- Pollutant pricing mechanisms
- Cryptocurrencies
See: How to Build Canada’s Competitiveness Amidst the Rise of an Intangibles Economy and Greater Geopolitical Complexity
Papers addressing other matters that are relevant to accounting for intangible assets but not included on the list above will also be considered. The IASB and its partnering journals welcome submissions that draw upon different methodological approaches such as analyses, experiments, surveys as well as empirical-archival and field study methods.
For more information, find the call for papers here.
Deadline for submissions is 31 March 2023. Decisions on submitted papers will be made by 30 June 2023.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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ECB Report on CBDCs: Functional scope, pricing and controls
ECB | Ulrich Bindseil, Fabio Panetta, Ignacio Terol | Dec 2, 2021
Even before their deployment in major economies, one of the concerns that has been voiced about central bank digital currency (CBDC) is that it might be too successful and lead to bank disintermediation, which could intensify further in the case of a banking crisis.
Some also argue that CBDC might crowd out private payment solutions beyond what would be desirable from the perspective of the comparative advantages of private and public sector money. This paper discusses success factors for CBDC and how to avoid the risk of crowding out.
After examining ways to prevent excessive use as a store of value, the study emphasises the importance of the functional scope of CBDC for the payment functions of money.
See: Podcast: CBDC implementation models and the role of the private sector including Payments Canada architect
The paper also recalls the risks that use could be too low if functional scope, convenience or reachability are unattractive for users. Finding an adequate functional scope – neither too broad to crowd out private sector solutions, nor too narrow to be of limited use – is challenging in an industry with network effects, like payments.
The role of the incentives offered to private sector service providers involved in distributing, using and processing CBDC (banks, wallet providers, merchants, payment processors, acquirers, etc.) is discussed, including fees and compensation.
Download the 36 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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RBC Research: Preparing for Hyperdrive – Themes that will define our new future
RBC Wealth Management Research | Dec 7, 2021
Get ready for accelerated disruption. As we think forward to the future, progress will be faster than it has ever been and it will not be linear. Just as we did in our Landmark 2018 Imagine Report, in this thought leadership study we have taken a global, cross-sector approach to determining the themes that will define our new future.
Challenging our global research teams in their respective areas of expertise and coming together to share ideas in recent months, we identified five key themes investors and executives alike across all industries must collectively understand to prepare for the years ahead.
Themes that will define our new future
1. The Quest for Immortality – Biopharma breakthroughs, life science real estate, 5G, autos, consumer wellness, space exploration and more come together to increase life expectancy rates globally.
2. The Individual Revolution – Data monetization, blockchain, gene editing and an evolving gig economy put the individual front and center like never before.
3. Artificial Intelligence Activated – This is no longer a drill. The path is set for the latter stages of AI to be integrated into our global economy. Don’t be left behind.
See: WEF Insight Report: Digital Assets, Distributed Ledger Technology, and the Future of Capital Markets
4. Hybrid Living – Our physical and digital worlds are rapidly combining, suddenly becoming indistinguishable and the implications are radical.
5. The Great Balancing Act – An accelerating rate of change on multiple fronts has the potential to create unprecedented instability. Resources are constrained and as we make tremendous forward progress on global sustainability, we must always keep in mind the other side of the coin. Innovation will thrive and new tensions will arrive.
In conclusion, the five themes highlighted in this thought leadership study provide a glimpse into the future and the opportunities and challenges that lie ahead. Life science, in particular, plays a significant role in the first theme, "The Quest for Immortality," as breakthroughs in biopharma and gene editing are increasing life expectancy rates globally. As we prepare for accelerated disruption, it is essential to collectively understand these themes and continue to learn more about the implications and potential opportunities they bring.
By staying ahead of the curve and embracing change, we can pave the way for a brighter future. This requires us to be open-minded and flexible in our approach to new technologies and ways of working, as well as actively seeking out knowledge and insights from a variety of sources. Only then can we truly harness the power of disruption to drive innovation and progress.
Download the 263 page PDF RBC Research report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Blockchain Vulnerabilities, Forensics And Legal Challenges
McCarthy Tetrault | | Nov 19, 2021
It is often assumed that blockchain based digital currencies and applications are safe and secure. In fact, blockchain ecosystems including cryptocurrencies such as bitcoin and Ether, smart contracts that power a plethora of transactions, and blockchain exchanges have many vulnerabilities.
Like many other financial systems, blockchain based systems are subject to all manner of hacks, frauds scams, and vulnerabilities. They happen at the speed and anonymity of the Internet.
There are, understandably, numerous legal challenges when it comes to obtaining civil remedies for these Internet based crimes. This is as true, and perhaps even more so, for blockchain hacks, scams, and frauds as it is for a whole host of other Internet crimes and wrongs.
Blockchain vulnerabilities, hacks, frauds and scams
There are trillions of dollars invested in blockchain based digital currencies. Bloomberg recently estimated that the cryptocurrency market is now worth more than U.S. $3 trillion. There are well recognized financial risks associated with cryptocurrencies volatility. But, this has not seemed to have dampened the market for these items.
See: Crypto fraud and breaches on pace to exceed $3 billion in 2021
While losses from hacks and vulnerabilities are hard to estimate, by one account hackers have stolen nearly $2 billion worth of cryptocurrencies in the two year period between 2017-2019. Some hacks are by lone hackers, but many are by sophisticated cybercrime organizations. According to a recent article In the MIT Security review, the hype that these assets are unhackable are “dead wrong”. According to the article:
In short, while blockchain technology has been long touted for its security, under certain conditions it can be quite vulnerable. Sometimes shoddy execution can be blamed, or unintentional software bugs. Other times it’s more of a gray area—the complicated result of interactions between the code, the economics of the blockchain, and human greed. That’s been known in theory since the technology’s beginning. Now that so many blockchains are out in the world, we are learning what it actually means—often the hard way. [ii]
As with every other financial system, there are opportunities for fraud. One vector is fraud associated with online marketplaces.
Private key security attacks are also a known means of allowing malicious actors to steal cryptocurrencies. A private key allows individuals to access funds and verify transactions. An attacker who has discovered a vulnerability in an elliptic curve digital signature algorithm, for example, can recover a user’s private key. If a private key is stolen, it is difficult to track any related criminal activity and recover the relevant blockchain asset.[viii]
See: Decentralized Finance—Risks, Regulation, and the Road Ahead
Hackers have also been known to steal the keys to cryptocurrency wallets.[ix]
Of course marketplaces, like almost every other organization in Canada are subject to data breaches from a myriad of sources.
Despite all the security features blockchain offers, individuals and organizations are still susceptible to phishing attacks.
SIM swap attacks are also not uncommon.
Hackers have also been known to exploit technical weaknesses in blockchain systems.
Hackers can also engage in Routing Attacks. Blockchains rely on real-time, large data transfers. Hackers can intercept real-time large data transfers such as by hijacking IP prefixes or dropping connections momentarily, preventing the system from reaching consensus.
See:
Crypto scams, DeFi hacks, and rug pulls: Why the crypto industry needs insurtech
CipherTrace August 2021 Crypto Crime Report: Crypto Fraud Dips as DeFi Hacks Grow
Other examples of technical weaknesses were a cryptographic flaw in the cryptocurency Zcash that could have been exploited to make unlimited counterfeit Zcash and in bitcoin’s main client, Bitcoin Core, that had a flaw that could have let attackers mint more bitcoins than the system was supposed to allow. [xviii]
Research shows that there are also many other security vulnerabilities associated with in smart contracts. [xxi] Other types of attacks include the “Balance Attack” and “Sybil Attacks”. [xxii]
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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RegTech: Powering the future of regulation
ADGM | Nov 23, 2021
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has published a report on its experience with using regulatory technology (regtech) solutions to improve regulatory outcomes for financial institutions.
See: Fintech, regtech and the role of compliance 2021
By setting out case studies detailing how the FSRA has worked with leading regtech providers, the report provides learning points for financial institutions and other regulators who are embarking on their journey to adopt new technology that makes compliance easier and more efficient.
Download the 43 page PDF report --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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