BusinessDay

PSG’s cryptocurrency payment to Messi shows direction of future money – expert

The last week’s announcement that Argentine soccer star, Lionel Messi will receive payment in cryptocurrency tokens as part of his move from Barcelona to French club Paris Saint-Germain (PSG), has cleared the air to where the future money is, expert has said.

Nigel Green, the chief executive and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations said if anyone still doesn’t believe that cryptocurrencies are the future of money, investments and raising capital, they are already considerably behind the curve.

“Paying one of the world’s biggest footballers in crypto, once again highlights that cryptocurrencies are now almost universally recognised as the future of money.”

“PSG only disclosed that the actual amount in fan token is ‘significant’, but media reports are estimating that the amount could be between 25 and 30 million euros.

Read Also: Messi starts new career with PSG

“Digital, borderless money in our increasingly digitalised world makes sense, especially at a time when traditional currencies have been devalued by governments printing unprecedented amounts of them,” said Green.

He continued: “Demographics are also on the side of cryptocurrencies. Millennials – who are beneficiaries of the largest-ever generational transfer of wealth, predicted to be more than $60 trillion from baby boomers to millennials over the next three decades – have grown up on technology. They are digital natives. Cryptocurrencies are, by their very nature, tech-driven and their long-term trajectory is secure.”

Read Also: What you should know about Non-Fungible Tokens within Nigerian laws

But digital assets are more than a form of payment and a store of value in the usual sense.

The deVere CEO also believes that increasingly they will be used by businesses to raise capital.

“Messi is being paid a large chunk of his salary in the club’s own digital asset, the $PSG Fan Token. Manchester City launched its own fan token in March using the same technology.

“They are doing this as a way to drive interest and investment into the clubs.

“We can expect a growing number of companies to harness the enormous potential of cryptocurrencies and blockchain technologies,” he added.

According to Green, times are evolving, and the old-fashioned methods of raising capital from expansion are outdated.

“Moving forward, it will become standard for business leaders to be seeking to raise significant capital and awareness for their organisations – thereby providing considerable growth opportunities – in a cost-effective way through establishing their own digital tokens.”

“Those who do not see digital assets as the future for money, investments and raising capital are, I believe, already considerably behind the curve,” he restated.