Roubini unimpressed with Crypto Nation Switzerland
WEF stalwart Roubini, pictured here at a previous edition, is a long-term fierce critic of cryptocurrencies.
Keystone / Jean-christophe Bott
Switzerland’s flourishing cryptocurrency and blockchain sector continued its expansion last year. But this did not stop renowned US economist Nouriel Roubini berating a gathering of blockchain enthusiasts at a World Economic Forum side event, telling them: “It’s all fluff, just total fluff.”
This content was published on
2 minutes
When not covering fintech, cryptocurrencies, blockchain, banks and trade, swissinfo.ch's business correspondent can be found playing cricket on various grounds in Switzerland - including the frozen lake of St Moritz.
Roubini made his comments at the CV Summit in Davos on Thursday, following the presentation of a study that showed the number of Swiss blockchain companies and jobs increasing for a third year.
The self-styled “Crypto Nation” recorded 842 ventures in Switzerland and Liechtenstein by the end of 2019. This included the Libra stablecoin project that arrived with much fanfare last summer before running into a wall of potentially fatal protest from governments and regulators.
This compares to 750 entities in 2018, a figure that includes start-ups, assorted services such as legal and consultancy firms plus academic institutions. The number of jobs supported by the industry grew from 3,300 to 4,400, states a surveyExternal link from business incubator CV VC and PwC Strategy&.
The growth rate has slowed down from the heady period of 2017, running into the first half of 2018. The number of start-up casualties is also starting to mount.
However, many other projects have firmly established themselves in Switzerland, prompting CV VC CEO Mathias Ruch to proclaim that the sector “has become more stable and mature.” This was further evidenced by the Swiss financial regulator awarding the first two banking licenses to new banks specialising in digital assets.
Ruch also highlighted increasing interest in Swiss blockchain know-how from large Chinese banks, government agencies and investors in recent months.
But Roubini, also speaking at the CV Summit, was unimpressed by talk of transforming finance through blockchain. Referring to fintechs such as Alipay, M-PESA, Venmo, PayPal and Square, Roubini said: “There is a revolution in payment services in the financial system, billions of people doing billions of transactions every day. This has zero to do with crypto and blockchain. That’s the reality.”
Popular Stories
More
Foreign affairs
Why Swiss trams have become sought-after vehicles in Ukraine
Switzerland participates in ASEAN foreign ministers’ meeting
This content was published on
This engagement was part of a four-day tour of Southeast Asia, aimed at advancing the Swiss Federal Council's Southeast Asia Strategy.
Majority of shareholders approve sustainability reports of major Swiss companies
This content was published on
Shareholders have approved the sustainability reports of the largest Swiss companies by a large majority at their annual general meetings.
EU releases €1.5B frozen assets to Ukraine: Switzerland opts out
This content was published on
The EU announced the release of €1.5 billion (CHF1.44 billion) in aid to Ukraine. Switzerland will not follow the EU's approach.
Five people charged in connection with deadly Swiss rockslide
This content was published on
Five people have been charged with multiple negligent homicide in connection with the deadly Bondo rockslide that occurred seven years ago.
Mountaineer dies after 100-metre fall from Matterhorn
This content was published on
A women fell down the east face of the iconic mountain on Thursday, from an altitude of some 3,460 meters above sea level.
This content was published on
The uptick in company registrations in the blockchain industry bucked the trend of slightly fewer start-ups setting up shop across all sectors in Switzerland last year. Switzerland has built a reputation as a global hub for the blockchain industry. Much activity is based around the Crypto Valley of canton Zug and in the Zurich financial…
This content was published on
The Swiss blockchain sector continues to boom: over 600 companies and institutions are now located in the ‘Crypto Nation’ and Liechtenstein.
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.