El-Erian says governments should stop using crypto as illegal payments and reckless speculation

“It’s time for more Western governments to reject the crypto revolution as a mix of illegal payment schemes and reckless financial speculation,”says Mohammed El-Erian, an adviser at Allianz and Gramercy Funds Management.

Western governments urged to stop ignoring crypto revolution
Mohammed El-Erian, president of Queens College, University of Cambridge, called on the crypto world and Western governments to cooperate.

The Egyptian-American businessman also serves as chief economic adviser at Pimco’s parent company, Allianz, one of the largest investment managers, where he serves as CEO and co-investment manager. Last year, he was also appointed chairman of Gramercy Funds Management, an investment firm specialising in emerging markets.

In an article published in the Financial Times on Thursday, El-Erian wrote::

It’s time for more Western governments to stop provoking the crypto revolution as a mix of illegal payment schemes and reckless financial speculation.

“Instead, they need to be more open to innovation in cryptography, making them a better conduit for finance, the economy and society,” he advised.

In an interview with Yahoo Finance on Friday, he detailed the issue. “Both the crypto world and governments should come together and speak a common language,” he decried. “In the crypto revolution, we have really important innovations related to the payment system. And we have to take it seriously.”

He continued: “Why should we take this seriously? For two reasons. One could make financial mediation more effective. Second, if we are not careful, China, which takes a top-down approach, can set the agenda.”

The adviser also said crypto backers should deepen their involvement in regulatory and energy issues. “They need to move away from the zero-sum mentality when their profits can only be achieved through losses from the current financial system.,

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