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“Is there a job for cryptocurrency sooner or later? Sure, however critically, formally sanctioned, that is very totally different,” the chief financial advisor at Allianz advised CNBC on Tuesday.
“Formally sanctioned” may take the type of a government-issued digital coin, like bitcoin for instance, however that is going to take “a few years,” El-Erian mentioned. “It is not one thing that we’ll see within the subsequent three to 5 years … as a result of individuals’s habits and folks trusting within the new medium and alter does not occur in a single day.”
However make no mistake, “we’re transferring away from money,” mentioned El-Erian, former CEO of Allianz-owned Pimco. “Go to Sweden and you will see how briskly one can transfer away from money.”
Earlier this month, CNBC looked into Sweden’s efforts to ditch paper cash. Simply 2 p.c of the overall worth of transactions there consist of money, and that’s expected to decline to lower than zero.5 p.c by 2020, in keeping with analysis by Capgemini and BNP Paribas. Sweden is already thought-about essentially the most cashless society on the earth.
Sweden apart, “money nonetheless performs a reasonably essential,” if diminishing, position around the globe, El-Erian mentioned.