In an interview on Bloomberg, Henri Arslanian, FinTech & Crypto Lead China/HK and U.S. Liason, Hong Kong at PricewaterhouseCoopers indicated that 2019 will be a positive year for cryptocurrrency developments.
Citing the entry of institutional players such as Fidelity and Goldman Sachs who have recently been making partnerships with crypto companies or even outright purchases, Arslanian stated that these players bring ‘institutional expertise and experience to the sector which is something the crypto industry needs, especially at a time like today.‘ These deals will also encourage other traditional players to enter the space.
In 2019, PwC sees big picture regulatory elements changing, pointing globally to jurisdictions such as: Hong Kong, Switzerland and Gibraltar providing comfort to both institutional investors and players. The bipartisan crypto bills brought forward in the USA and ICO regulation in France are also seen to be part of positive changes coming in what are traditionally seen as slower moving economies.
Arslanian sees the fall in crypto prices as a necessity that ‘cleared a lot of noise in the sector‘. However, it put legitimate companies in tougher positions, having to produce with less capital.
Responding to questions about volatility issues in crypto, Arslanian sees stable coins and security tokens as exciting developments in 2019. An increase in stable coins will provide traders with the ability to ‘stay’ in crypto with less exposure to volatility and providing a more usable medium for purchasing power. Security tokens, backed by real assets and paying dividends will bring liquidity to projects such as real estate, benefitting both industries.
Overall, PwC sees 2019 as being an exciting year for cryptocurrency development in more traditional financial circles.