thecoinrepublic.com
- President of Queens College, Cambridge University, Mohamed El-Erian, has encouraged the crypto community and western governments to work together
- El-Erian wrote the following in an editorial article published in the Financial Times on Thursday more western countries must cease rejecting the crypto revolution as a mash-up of illegal payment methods and risky financial speculation
- According to El-Erian, the crypto industry must take seriously issues about illegal payments, money laundering, and energy usage
The moment has come for more western governments to stop dismissing the crypto revolution as some mix of criminal payments systems and irresponsible financial speculation, says Mohamed El-Erian, an adviser to Allianz and Gramercy Funds Management. President of Queens College, Cambridge University, Mohamed El-Erian, has encouraged the crypto community and western governments to work together. The Egyptian-American businessman formerly served as CEO and co-chief investment officer of Allianz, the corporate parent of PIMCO, one of the world’s largest investment managers. He was also named chair of Gramercy Funds Management, an Emerging Markets investment business, last year.
- El-Erian wrote the following in an editorial article published in the Financial Times on Thursday more western countries must cease rejecting the crypto revolution as a mash-up of illegal payment methods and risky financial speculation. Rather, they should be more open to accepting crypto innovations and channeling them in a better path for finance, the economy, and society as a whole, he suggested. He expanded on this issue in aninterview with Yahoo Finance. He began by saying, Both the crypto world and governments need to join together and speak a similar language. They have extremely crucial advances in the crypto revolution that have to do with the payment system. And that is something they must take seriously.
Why does he have to take it seriously? he continued. There are two explanations for this. It has the potential to improve the efficiency of financial intermediation. Second, if we aren’t cautious, China, which has a top-down approach, may begin to set the agenda. Crypto enthusiasts, according to the advisor, need to get more involved in regulatory and energy problems. They must move away from a zero-sum paradigm in which their benefits can only come from the losses of the existing banking system, he said, adding that in the absence of a more cooperative strategy, the future of both sides of the crypto world in the west may be defined by what a faster-moving China does and wants to do.
According to El-Erian, the crypto industry must take serious issues about illegal payments, money laundering, and energy usage. Because many countries, including the United States, are suspicious about cryptocurrencies, he stated that if governments and the crypto sector do not collaborate, there are two hazards.
The Allianz adviser went on to say that the internal danger is that the private sector will embrace the technology more quickly than the government. It’s something we see on a daily basis, so it’s not going away anytime soon. The second and more pressing concern is that China is not going to wait. El-Erian cautioned that China has already chosen what digital money should look like China has decided that it should be a top-down approach and that it wants to export its methodology. Why? Because it provides access to regional payment networks. It grants it access to information. As a result, we must take it seriously, or we will entirely lose the plot.