The current crisis is an opportunity for crypto assets and blockchain, having an crucial impact on the development of the blockchain ecosystem for the next few years. The challenge is now to draw the correct conclusions and to build systems, tools and applications which provide real value out of crypto assets and blockchain.

Crypto assets are digital by nature, thus do not have “physical” limitations. Neither do they need teller machines for cash withdrawals nor physical settlements and storage (e.g. gold, silver). Further, the monetary policy of crypto assets is more transparent and restricted.

Bitcoin’s core design is to be a scarce digital asset. In times where governmental monetary policies are unforeseeable, crypto assets provide a real alternative. Still a niche, blockchain surrounding ecosystem and investment theories (“Safe-haven asset”) are now being tested, which is positive as it improves the general understanding of this asset class.
Further, blockchain could also be used to mitigate the impact of the Coronavirus by providing blockchain health certificates and vouchers linked to one’s identity.

Source: MV Index Solutions, Data as of 04/16/2020

About the Authors:

Prof. Dr. Philipp Sandner has founded the Frankfurt School Blockchain Center (FSBC). In 2018 and in 2019, he was ranked as one of the “top 30” economists by the Frankfurter Allgemeine Zeitung (FAZ), a major newspaper in Germany. Further, he belonged to the “Top 40 under 40” — a ranking by the German business magazine Capital. Since 2017, he is member of the FinTech Council of the Federal Ministry of Finance in Germany. The expertise of Prof. Sandner includes blockchain technology in general, crypto assets such as Bitcoin and Ethereum, the digital programmable Euro, tokenization of assets and rights and digital identity.

Jonas Gross is a project manager and research assistant at the Frankfurt School Blockchain Center (FSBC). His fields of interest are primarily cryptocurrencies. Besides, in the context of his Ph.D., he analyzes the impact of blockchain technology on monetary policy of worldwide central banks. He mainly studies innovations as central bank digital currencies (CBDC) and other crypto currency projects as “Libra”.

Victor von Wachter is is product manager and blockchain engineer at the Swiss-based Smart Valor Digital Asset Exchange. His fields of interest are primarily blockchain protocols, Staking, STOs, and DeFi at the interface between business, technology and data. His research at the Technical University Munich contributed to the development of the ERC1400 and ERC1410 Security Token Standard.

The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.