Cryptocurrency Industry Showing Maturity and Institutionalization, says Mohamed El-Erian

7:56 pm
September 12, 2023

The cryptocurrency industry is undergoing a process of maturation and becoming more institutionalized, according to Mohamed El-Erian, the chief economic advisor at Allianz. El-Erian made these remarks during an interview on CNBC’s “Squawk Box” show, emphasizing the growing embrace of cryptocurrencies by major players in the financial industry as a positive development. He also discussed the current state of US inflation during the interview.

El-Erian’s comments come as Bitcoin rebounds from recent lows and trades above $26,000. The market is eagerly awaiting updates on US inflation. The news of asset manager Franklin Templeton filing for a bitcoin exchange-traded fund (ETF) follows similar moves by BlackRock, Fidelity, and others.

Crypto Becoming an Integral Part of the Global Financial Ecosystem

Mohamed El-Erian believes that the increasing adoption of cryptocurrencies by mainstream financial institutions is evidence that crypto is becoming a permanent feature of the financial ecosystem. He stated, “Crypto is settling as part of the ecosystem. People have recognized it’s not the new global currency. People have also realized it’s not going to disappear tomorrow. It’s been institutionalized. If I were a crypto person, this maturation process is a good thing.”

El-Erian also discussed US inflation, expressing his view that headline inflation will be more complex, with core inflation potentially diverging from the Federal Reserve’s desired 2% level. He noted that the market may need to accept the idea of a prolonged period of higher rates. El-Erian is optimistic about the future of cryptocurrency, particularly in terms of adoption by Wall Street giants, which could have implications for cryptocurrency prices.

Summary

Mohamed El-Erian, chief economic advisor at Allianz, believes that the cryptocurrency industry is maturing and becoming more institutionalized, as evidenced by the growing adoption by major financial players. He sees this development as positive for the industry. El-Erian also shared his views on US inflation. Bitcoin has rebounded from recent lows, and the market is eagerly awaiting updates on inflation. El-Erian remains optimistic about the future of cryptocurrencies, especially considering their growing adoption by Wall Street giants.

FAQs

What did Mohamed El-Erian say about the cryptocurrency industry?

Mohamed El-Erian stated that the cryptocurrency industry is becoming more mature and institutionalized. He emphasized the growing acceptance of cryptocurrencies by major financial institutions as a positive development for the industry.

What did El-Erian say about US inflation?

El-Erian expressed the view that US inflation will be more complex, with core inflation potentially deviating from the Federal Reserve’s desired 2% level. He suggested that the market may need to accept a longer period of higher rates.

What is El-Erian’s outlook for cryptocurrency?

El-Erian remains optimistic about the future of cryptocurrencies, particularly in relation to their adoption by Wall Street giants. He believes that this adoption could have implications for cryptocurrency prices.


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