Allianz’s chief economic advisor Mohamed El-Erian says that bitcoin is not too big to fail and that governments may intervene. While he believes that cryptocurrency will grow in popularity, the economist says “it takes away a lot from governments,” adding that this asset “can only establish itself if governments allow it to.”
Economist Warns of Government Intervention, Bitcoin Is Not Too Big to Fail
Mohamed El-Erian said in an interview with CNN Tuesday that bitcoin is not “too big to fail” and its failure could disrupt the global monetary system due to the “liquidity paradigm.”
El-Erian, an Egyptian-American businessman, is the president of Queens College, Cambridge University. He is also the chief economic adviser at Allianz, the corporate parent of PIMCO, one of the largest investment managers, where he was CEO and co-chief investment officer.
He explained that there are three types of crypto investors. The first type consists of those who use bitcoin to mitigate risk, viewing the