The Swiss Bitcoin expert with a top international reputation in the Moneycast
The international monetary and financial system is changing at breakneck speed. Cryptocurrencies such as Bitcoin and blockchain technology are presenting banks with huge challenges. Fabian Schär, Professor of Blockchain, Bitcoin and Financial Market Technology at the University of Basel, is right in the middle of this development.
It is a highly political question what our monetary system will look like, says Fabian Schär. The professor of financial market infrastructure is one of the most sought-after experts internationally when it comes to cryptocurrencies and blockchain technologies. He has even been invited to speak at the G-20 meetings, most recently at the invitation of the Indian Ministry of Economic Affairs.
Bitcoin as a “store of value”
For him, it was a tremendous experience, says Schär. “The atmosphere at such a meeting is very impressive This is also because the most powerful of the powerful come together there: The G-20 is a loose association of the most important economic nations in the world. At these meetings, international regulations are regularly discussed in advance, often behind closed doors.
Currently a hot topic is Schär’s area of expertise: “FinTech”. This means everything that has to do with financial market infrastructure. For example, the question of how payments are processed. Cryptocurrencies are important drivers of innovation here: for example, payments with Bitcoin no longer need a central counterparty – the money can be sent directly from the buyer to the seller. This is not the case with standard bank transfers: in most cases, payments go through a third party, often a bank.
So will Bitcoin become established as a new currency? Schär is very cautious about making predictions. He says: “If everything develops the way the original idea was, then Bitcoin can possibly become a store of value in the future.” Bitcoin, on the other hand, is unlikely to establish itself as a means of payment.
“I was extremely sceptical”
Nevertheless, Schär says he finds the innovations of cryptocurrencies extremely exciting. One reason for this lies in the hobby of his youth: back then, he spent a lot of time playing video games and thus developed an interest in computer science. Later, when he was studying economics, he began to look into cryptocurrencies.
“At first I was extremely sceptical,” says Schär, “but the more I looked into it, the more it fascinated me.” Bitcoin is highly exciting, he says today, a fantastic innovation. “The system is incredibly well thought out.” But Schär also warns of the risks: “The high fluctuations in value are a problem.” One should be careful when investing in cryptocurrencies, he says. He recommends rather investing in one’s own education and in a better understanding of cryptocurrencies.
What will banks do in the future?
Schär does the same in his role as a professor for cryptocurrencies. What he likes most about his job is the versatility. As a professor, he can exchange ideas with many exciting people from politics and the private sector and pass on input from his research. This also involves the financial infrastructure of the future and the role of intermediaries such as banks. Much is still unclear, says Schär, but one thing can already be said: “The roles will change
Source: www.swissinfo.ch