Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto. It is decentralized, and has been praised for its potential to revolutionize the way money is transferred and provides a more secure and anonymous way to transact, but has also been criticized for its high volatility, its use in criminal activity, and its environmental impact.
Jenny Johnson, the CEO of Franklin Templeton, said at the Consensus 2023 event that Bitcoin and other cryptocurrencies are only distractions in the crypto industry. “Bitcoin is the greatest distraction from the greatest disruption coming to the financial system, and that’s blockchain,” Johnson said. She added that while there is great value in the use of blockchain, cryptocurrencies have diverted attention from the real value of the industry.
Jenny also said that if Bitcoin grows so large and becomes a threat to the global economy, especially that of the US, the nation will not hesitate to clamp down on digital assets. No nation wants to lose such control or power to a global currency. “Currencies are very important for governments to manage their economies, and will not cede their currency to this concept of a global currency.”
Expect more regulation
The CEO said that the future of crypto is regulated. She added that users and supporters of crypto should accept the reality that more regulations are coming, as there is no other way out.
The CEO advised companies that are involved in the crypto market to work side-by-side with regulators. Citing the relationship between her firm, Franklin Templeton, and the US regulators, especially the Securities and Exchange Commission (SEC), the guest noted that the release of products for the industry should be in line with regulatory guidelines.
Apart from the US, she revealed that Franklin Templeton is always in tune with regulators from other nations, especially those that are crypto-friendly like Singapore, Hong Kong, and the UAE. Although these regulators are trying their best not to approve regulations that are against the industry, she told the audience. “This is a complicated space, and the regulators are trying to be thoughtful.”
Finally, she believes that the innovation brought by crypto and blockchain holds a lot of pros for the financial world if utilized properly.