While Twitter CEO Jack Dorsey recently labeled cryptocurrencies as the future of online money, the new payment tools are still not a thing for some individuals, including private and public organizations according to Christian Gattiker-Ericsson, the chief strategist of the Switzerland-based multinational private bank, Julius Baer.
Gattiker-Ericsson, who is also the head of research and investment solutions at Julius Baer, believes that cryptocurrencies are still evolving, and no one knows which ones will succeed.
“We are still in this Darwinian selection process where different business models get tried and tested, but we haven’t seen something that was a clear winner,” Gattiker-Ericsson said in an interview with Arabian Business.
According to the official, digital currencies are “still a key topic,” and lack the trust that can enable them to compete with other traditional fiat currencies of the world.
He argued that there is a need to convey the trust, which is inherent in currencies, central banks, and the government, while the “killer” use case of cryptocurrencies, which could pitch for their wider adoption, is yet to be discovered.
Likely referring to Bitcoin, Gattiker-Ericsson further mentioned that several cryptos still struggle with the fact that they have limited or plateauing supply patterns, which make them more like a gold than a currency. He added:
I think it’s a lot of speculation. There’s a lot of volatility, and nobody knows which cryptocurrencies will make it. […] I personally think some will make it because the idea behind it isn’t completely bad, but we do not advise our clients to speculate in the cryptocurrency field.
However, for the underlying blockchain technology, Gattiker-Ericsson said it has a whole variety of potential applications, with hopes that it will possibly change the rules of the game.
“It’s still something we’re exploring. It’s like another frontier we’re approaching,” he concluded.
Gattiker-Ericsson Image via Payoff.Ch