President Trump, according to Bloomberg News, is the midst of appointing a World Bank President and appears to have a preference for known crypto enthusiast El-Erian, the current Chief Economic Adviser at Allianz.
The economist strongly backs the distributed currency system calling it the “peer-to-peer” transaction of the future with ‘disruptive’ technology. This stance as CEA at Allianz, has been in contradiction to Allianz CEO Andreas Utermann, who wants bitcoin to be ‘outlawed.’
More Crypto Bear
El-Erian has been on the cryptocurrency map and an ardent market observer with his regular inputs with a bearish inclination. He read the third-quarter of 2017, as the overvaluation of bitcoin, with pricing gaining more in “mass adoption” is not feasible. Commenting on the market trends of 2017 third quarter, El-Erian said,
“The current pricing assumes massive adoption, and I don’t think governments will allow the amount of adoption that’s currently priced in.”
Thus, El-Erain was proved right with 2018 proving to be the most difficult year for cryptocurrencies leading to his iconic comments,
“What we’re getting is the realization that adoption is not going to be as big and as quick as the proponents of crypto would like. I think it’s going to be there, it’s going to last for a long time, it’s going to play a role in the ecosystem, but it’s not going to be the currency that a lot of proponents would like it to be.”
As WB President
On the other hand, the World Bank is one of the most evolved financial institutions in the world, and the powerful influence of economic policies, financial policies followed in most democratic countries across the world. Through its ability to provide loans for the alleviation of power, the bank has been growing in stature over the years.
The exit of ex-President, Jim Yong Kim has created a vacuum for the post and the President’s recommendation is highly valued during the selection of the candidate. However, it is also true that it is the Board of Executives who are the final decision makers in this regard.
Meanwhile, media continue to speculate that the President may have his way with the appointment of El-Erian to the President of WB post. In which case, the industry would be the final beneficiary as he promotes – cryptocurrency and blockchain initiatives via his organization. WB is already blockchain positive with an Ethereum-backed product valued at $73 million bonds, and the bank prefers to call as “world’s first public blockchain bond.”