Cashless companies could promote the issuance of state crypto currencies, according to the forecast of Mohamed El-Erian, Chief Economic Advisor of Allianz Insurance. In an interview with CNBC this week, he highlighted the global trend towards cashless payment. Especially Sweden is on its way to a cashless society. State-controlled crypto currency, on the other hand, could play an important role in this change. Meanwhile, a number of central banks around the world have already launched the necessary initiatives.
According to experts, what the Scandinavians are already demonstrating is likely to become a global trend in the coming years:
Bitcoin news: As digitalisation progresses, cashless payment is also gaining ground
While crypto currencies have been trying for years to be a pillar of this trend, read the review about the Bitcoin news here, Allianz chief consultant Mohammed El-Erian concludes from their meteoric rise in talks with CNBC this week: “Digital currencies will play an increasingly important role in the future, yet “state control” is needed to exploit their Bitcoin news. The economic consultant underlines this:
“Is there a future for crypto currencies? Yes, but decisively [differently], [they] are officially approved by the authorities. This is something completely different.”
According to El-Erian such supervision could take the form of state crypto currencies in the future. While some central banks are already taking the plunge into the digital age, they don’t want to tell CNBC when this will be the case worldwide.
“It’s not something we’ll see in the next three to five years […] because human habits and people’s trust in the new medium and change won’t grow overnight,
said El-Erian, who at the beginning of the year was already regarded as an important candidate for the US Federal Reserve’s vice-chairman, but was left behind by President Trump’s nomination.
However, the 59-year-old has stressed several times in the past that he thinks little of the crypto currencies already in circulation. In September, for example, he last expressed harsh criticism of Bitcoin. According to his opinion, this should be half as much value as its course. It is unlikely that Bitcoin will be used and accepted by the general public.
Global trend: cashless payment booming
While Norway and Sweden are already promoting it, studies confirm that the world is on course for cashless societies at full speed. The World Payment Report, for example, confirms unprecedented growth in digital payments in 2015.
Digital transactions have experienced above-average growth of 22 percent, especially in developing and emerging countries. In developed countries, on the other hand, the pace of change is much slower at just under seven percent.
Among these, Sweden is the world leader. In the land of forests and lakes, on average only just under half of all payment transactions are made analogously. The rest is digital. But even cash-friendly Germany is not exempt from the trend. In Germany, the proportion of cashless payments rose by 8.8 percent in 2015 – and the trend is rising.
State crypto currencies: Economic rationality instead of vision of the future
Central banks around the world prove that El-Erian’s prognosis for the future of state crypto currencies is anything but a figment of the imagination in response to these trends. Around the globe, some financial institutions are already taking the plunge into the digital age, providing their national currencies with encrypted counterparts or playing aloud with this idea.
Nevertheless, the calculation seems to stand out decisively from the vision of the alliance consultant. Often the focus is less on forward-looking social change than on economic policy rationality.
A prime example of this is the crypto pioneer Venezuela. Its controversial crypto currency Petro, which is allegedly held by the state oil reserves, is primarily intended to serve the country to circumvent American economic sanctions.
Iran is likely to pursue a similar goal. At the beginning of the year, the central bank in Tehran announced the possible issue of a state-controlled currency. This could above all help to soften the pull of international crypto currencies in the country. Bitcoin & Co. should, as BTC-ECHO reported, play a decisive role in the devaluation of the domestic riad in the Gulf country in the face of American sanctions.
Using the economic pull, retaining control
But on the other side of the pond, too, the publication of state digital currencies is in sight. For example, the former governor