Cryptocurrencies will become more widespread, but this will not lead to their dominance in the financial ecosystem, Allianz chief economic advisor Mohamed El-Erian shared his prediction on Tuesday.
“I think cryptocurrencies will exist and will become more and more widespread, but they will be part of an ecosystem.They will not be dominant as a lot of the early adopters believe they will be,” El-Erian said.
He also stressed that cryptocurrencies must be considered as “a part of the commodity complex” rather than “currencies or an asset class.”
He explained the attractiveness of cryptocurrencies by the late-2000s global financial crisis and highlighted their “loss of trust” in the decade since.
Nevertheless, the advisor expressed confidence that cryptocurrencies are here to stay.
“I do believe this is not, you know, going to disappear. It’s just finding its place in the ecosystem,” El-Erian said.