Swiss Exec Believes Stablecoins to Be The Next Phase of Crypto Innovation

Luzius Meisser, the Founder and board member of the Bitcoin Association of Switzerland, recently expressed his firm belief in the prediction of stablecoins and security tokens leading the charge in the next phase of crypto innovation.

In an interview, today with Cointelegraph at the Crypto Finance Conference in St. Moritz, Switzerland, Me Meisser said that he believes that payment and utility tokens are “more or less over” and that stablecoins and security tokens will take over from here.

Mr Meisser is an important figure in the crypto industry of Switzerland, holding a position on the Board of Directors of the crypto-centric and asset management firm, Bitcoin Suisse AG.

He said that due to investors in ICOs having very few rights, especially when compared to equity investors like the ones in the stock market, ICO’s present landscape is possibly going to change considerably. This is also because unlike debt investors having a lesser risk of incurring losses as companies have a responsibility to pay back its debts, even if it goes bankrupt, ICO investors are at no such advantage.

In order to change this paradigm, according to his thinking, security tokens – those that represent a share of a given company, will become more common.

Talking about the current situation of payment and utility tokens, he said,

“I would say payment and utility tokens are more or less over…Sometimes they make sense.”

However, there are some key differences to this new market. Most importantly, the security token market could come under even more scrutiny than the current ICO market, as these tokens will be actual securities, unlike the present day tokens which are ambiguous about being securities. For example, last year the SEC announced that Bitcoin and Ethereum would not be considered securities by them, but many other coins having an ICO would be considered one.

However, he added that tokens backed by reserve assets like the US Dollar could have more luck having successful releases.

“Stablecoins are a precondition to enablle average comanies to bring their equity onto the Blockchain…because if they issue bonds or shares they want to do so against US Dollars, Euros or Swiss Francs, because those are the currencies they calculate in, not Bitcoin or Ethereum.”

This is similar to what the Winklevoss twins had expressed in recent times, with the launch of their own crypto exchange Gemini and the launch of the Gemini Dollar pegged to the US Dollar at a 1:1 ratio.