Following the recent announcement that El Salvador is to become the first country to accept Bitcoin as legal tender, it’s fair to say that the future of cryptocurrency has been firmly rooted in the world of finance.
This follows the news that famed Argentine footballer, Lionel Messi received an estimated £21-25 million worth of cryptocurrency tokens as part of his welcome package by his new football club Paris Saint-Germain. When you also consider, after much scepticism in the early days of digital currency, that governments are now in fact backing cryptocurrency, with the likes of yuan-pay-group.net providing a platform for users to trade in the world’s first government-approved cryptocurrency, it is becoming ever more apparent that those who don’t consider this as part of their financial futures are going to be left behind.
In fact, in light of the news surrounding Messi’s move and part payment in the French club’s cryptocurrency fan tokens, the CEO of one of the world’s leading independent financial institutions, deVere Group, Nigel Green, said those who still don’t believe that cryptocurrencies are the future of money, investments and raising capital are “already considerably behind the curve,” and we might just have to agree.
He added: “Paying one of the world’s biggest footballers in crypto, once again highlights that cryptocurrency is now almost universally recognised as the future of money.
“Digital, borderless money in our increasingly digitalised world makes sense, especially at a time when traditional currencies have been devalued by governments printing unprecedented amounts of them.”
How demographics may play a part
He continues: “Demographics are also on the side of cryptocurrencies. Millennials – who are beneficiaries of the largest-ever generational transfer of wealth, predicted to be more than $60 trillion from baby boomers to millennials over the next three decades – have grown up on technology. They are digital natives. Cryptocurrencies are, by their very nature, tech-driven and their long-term trajectory is secure.”
This may explain why El Salvador’s government is moving towards a future with its feet firmly place in the digital currency sphere as the central American country’s population has an average age of 27 with over 44% of the whole population coming in at 24 and under and just over 40% in the 25 to 54 age group. Every citizen who downloads the government’s new digital wallet app receives an apparent $30 in Bitcoin – the first cryptocurrency enabled by blockchain technology – and over 200 cash machines are being installed throughout the country so ensure that dollars can be converted into Bitcoin.
Cryptocurrency in business
It is certainly a big move and most likely welcome news for supporters of digital currency, but aside from being used as just a form of payment, what else does the future hold for cryptocurrency? The deVere CEO believes that digital assets hold more promise and will be increasingly used by businesses to raise capital.
Referring back to the top footballer’s payment from PSG, he explains: “Messi is being paid a large chunk of his salary in the club’s own digital asset, the $PSG Fan Token.
“They are doing this as a way to drive interest and investment into the clubs.”
And it isn’t just football clubs who are using digital assets within their businesses as they are joined by companies from the technology sector to food and drink brands and private jet and yachting companies. Green adds: “We can expect a growing number of companies to harness the enormous potential of cryptocurrencies and blockchain technologies.”
“Times are evolving, and the old-fashioned methods of raising capital from expansion are outdated.
“Moving forward, it will become standard for business leaders to be seeking to raise significant capital and awareness for their organisations – thereby providing considerable growth opportunities – in a cost-effective way through establishing their own digital tokens.”
Mr Green concludes: “Those who do not see digital assets as the future for money, investments and raising capital are, I believe, already considerably behind the curve.”