Jenny Johnson, CEO of CoinDesk, believes cryptocurrencies like bitcoin distract from blockchain technology. Johnson thinks the crypto business should prepare for regulation despite complaints about lack of regulation.
At the annual Consensus conference by CoinDesk, Jenny Johnson, CEO of the company, stated that blockchain technology offers more benefits than cryptocurrencies like bitcoin, which she considers a “distraction.”
Many participants in the industry routinely complain about the lack of crypto regulations in the U.S., but Jenny Johnson, CEO of Franklin Templeton, said she believes it’s crucial for the sector to accept that more regulations are on the way, whether they like it or not.
Blockchain will disrupt finance most
On Wednesday, Johnson claimed the future of the sector “will be regulated” and that cryptocurrencies like bitcoin (BTC) were a “distraction” from blockchain technology, which was the true breakthrough in the space.
Blockchain will cause the most disruption to the financial system, and Bitcoin is the biggest diversion from that, according to Johnson.
“I can assure you that the United States would restrict the use of bitcoin if it ever grew to such a size that it threatened the dollar’s status as the world’s reserve currency. For governments to effectively manage their economies, currencies are crucial, according to Johnson. “They won’t give up their money to this idea of a world currency.”
Johnson noted that it’s preferable for businesses to interact with authorities directly when they create new products. Managing $1.5 trillion in assets, Franklin Templeton has been in close contact with the U.S. Securities and Exchange Commission (SEC) as it developed its recently launched blockchain-based mutual fund, according to Johnson.
The worldwide investment company, which operates in over 30 countries, is used to working with foreign regulators, Johnson said.
Johnson stated, “I can tell you, different areas in the world are more advanced than others, more comfortable with [crypto] than others,” citing Singapore, Hong Kong, and the UAE as examples of crypto-friendly jurisdictions.
According to Johnson, authorities both inside and outside the United States are concerned about enacting rules that can have unexpected repercussions.
According to Johnson, “This is a challenging field, and the regulators are trying to be cautious.
Johnson is still optimistic about the potential for cryptocurrency and blockchain technologies to upend the financial sector despite regulatory uncertainties. According to Johnson, blockchain technology could create new investment opportunities for asset managers by removing inefficient “toll takers” and lowering friction.
