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AUSTIN, Texas - Jenny Johnson, CEO of Franklin Templeton, believes that despite the industry's complaints about the current state of cryptocurrency regulations in the United States, it's crucial for them to acknowledge and prepare for the inevitable influx of regulations, regardless of their personal preferences.
Jenny Johnson's address at CoinDesk's Consensus Festival was thought-provoking and insightful. She emphasized that the cryptocurrency industry will face increased regulation in the future, regardless of its current state. Johnson also made a point to highlight the importance of recognizing blockchain technology as the true innovation of the industry, and expressed her belief that cryptocurrencies like Bitcoin (BTC) are serving as a distraction from this vital development.
“Bitcoin is the greatest distraction from the greatest disruption [coming to the financial system], and that’s blockchain,” Johnson said.
“I can tell you, if bitcoin ever became so big that it became a threat to the U.S. dollar as the reserve currency, the U.S. would limit … the use of bitcoin. Currencies are very important for governments … to manage their economies,” said Johnson. “They will not cede their currency to this concept of a global currency.”
Johnson emphasized the importance of direct engagement between companies and regulators during the product development process. As a case in point, he highlighted Franklin Templeton's blockchain-based mutual fund, which was created with input from the U.S. Securities and Exchange Commission (SEC). Given that Franklin Templeton manages a staggering $1.5 trillion in assets, maintaining close communication with regulators was paramount to ensure compliance and smooth product launch.
Johnson further noted that as a global investment firm with a presence in more than 30 countries, Franklin Templeton has extensive experience collaborating with regulators beyond the United States.
“I can tell you, different areas in the world are more advanced than others, more comfortable with [crypto] than others,” Johnson said, naming Singapore, Hong Kong, and the UAE as examples of crypto-friendly jurisdictions.
Johnson remarked that regulators, both within and beyond the United States, are understandably cautious when it comes to enacting regulations, as there is always the risk of unforeseen consequences.
“This is a complicated space, and the regulators are trying to be thoughtful,” Johnson said.
Johnson's outlook on the future of the financial industry is bullish despite the regulatory uncertainty surrounding cryptocurrency and blockchain technology. He sees these emerging technologies as potential disruptors that could revolutionize the investment landscape for asset managers. By leveraging blockchain technology, asset managers could eliminate intermediaries and reduce friction, opening up new investment opportunities and creating a more efficient financial system. Johnson's optimism stems from his belief that the adoption of blockchain technology could help eliminate "toll takers" and wasteful practices that hinder the growth of the financial industry.
Source Coindesk
