Monex CEO Predicts a More Mainstream Role for Cryptocurrencies in the Financial Sector

Despite a prolonged slowdown in the global crypto economy with no signs of immediate revival, Oki Matsumoto, the Chief Executive of Monex Group Inc., is confident that digital currencies will soon emerge a convenient means for daily transactions. He implied that it’s just a matter of time till a “less volatile or nonvolatile” token enters the market and gains widespread recognition as an alternative of fiat for everyday use.

A New Frontier in the Global Financial System

Monex started its journey almost two decades back in 1999 with the vision of providing the average Japanese with a new instrument to tap in on the financial market. And 19 years later, it was that same vision that prompted the company to acquire Coincheck, the Tokyo-based digital currency exchange, in April 2018.

Matsumoto, who is also serving the boards of both Monex and Coincheck, is of the view that the ongoing boom in the FinTech industry will render financial services providers with advanced technological solutions the go-to destination for secure banking and payment services. Financial institutions making innovative use of blockchain technology and its derivatives are likely to make it to the forefront of this revolution, he added.

The Monex CEO also said that new innovations in the realm of FinTech will pave the way for new financial products that use the same underlying principles guiding cryptocurrencies. This phenomenon, according to Matsumoto, will further add to the scope of retaining investment options.

A New Class of Entity for Crypto Banking and Brokerage

Financial institutions serving retail clients usually tend to be giant corporations that operate multiple businesses under the same roof including brokerage, banking, and credit card business. But Matsumoto believed that the conventional approach won’t just cut it when it comes to digital assets.

Instead, he roots for a new type of entity specializing in cryptocurrency banking and brokerage services. The underlying responsibility and modus operandi of these new entities will remain more or less the same as that of the traditional banking system, he explained, adding that the only difference would be that the former will be based on just cryptocurrencies.

Worth noting here is that Matsumoto still looks confident that cryptocurrencies will soon have become an integral part of people’s personal finances. This, in turn, will make it necessary for the authorities to facilitate an adequate banking and payment services platform.

However, he also pointed out the most of the popular crypto tokens in circulation today (including Bitcoin) are just too volatile to be used as an alternative for fiat

“Probably in the near future, a less volatile or nonvolatile crypto will be invented that will be more suitable for payment,” he said, noting that digital currencies make it a lot easier and convenient to go about one’s daily transactions.

While Monex encourages clients to invest in cryptocurrencies, the company also points out that it’s not a healthy investment practice to put all their money in just one asset class. This is why Coincheck users are often reminded to diversify their portfolio by investing in ETF, bonds, and other conventional asset classes.

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