A computer scientist and economist who co-founded the Bitcoin Association Switzerland, Luzius Meisser, has spoken out about the direction of the cryptocurrency industry, pointing to stablecoins as the next big mover.

Meisser, who is also on the board at brokerage firm Bitcoin Suisse AG, was speaking at the Crypto Finance Conference in St Moritz on 16 January when he said that stablecoins and security tokens would have a significant effect on the ICO market moving forward.

Suggesting that up to now, ICO investors had been little more than donors with very few rights, the impetus is now shifting to consumer protection and that “payment and utility tokens are more or less over”. The direction for the future would be more likely to point toward stablecoins, which are legally considered to be payment or utility tokens rather than securities. Meisser commented:

“Stablecoins are a precondition to enable average companies to bring their equity onto the blockchain, because if they issue bonds or shares they want to do so against US dollars, euros or Swiss francs, because those are the currencies they calculate in, not Bitcoin (BTC) or Ethereum (ETH).”

Meisser reminded the conference that Swiss banks had been reticent towards cryptocurrencies, but clarified some of the alternatives available to the Swiss cryptocurrency community for circumventing the banks. The stablecoin alternative, however, is an ongoing debate globally with both its advocates and its detractors.

Since the Royal Mint in the UK canceled its stablecoin project after a US-based exchange group withdrew their support before the digital token launch last year, questions are continuing to be asked about the lack of institutional support for such projects.

One major concern is that stablecoins generally require the participation of traditional institutions, many of which are not fully convinced by the argument for digital currencies linked to traditional assets, and may be far more prone to withdrawing from token projects without warning as a result.

 

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Image Courtesy: Pixabay
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