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BusinessBanking & Finance

Cryptocurrency: game-changing blockchain will need shrewd regulation to protect consumers, says Franklin Templeton boss

  • Regulators will need to step up their game when it comes to oversight of the burgeoning industry, says the fund manager’s president and chief executive
  • She said blockchain technology can make transactions dramatically cheaper, cutting out the ‘middle man’ in many processes

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Given the popularity of bitcoin ETFs, regulators will need to step up their game when it comes to consumer protection, according to the Franklin Templeton boss. Photo: Reuters
Mia Castagnone
Blockchain is quickly shaking up the financial sector and, given the popularity of bitcoin exchange-traded funds (ETFs), regulators will need to step up their game when it comes to consumer protection and oversight of the burgeoning industry, according to the president and chief executive of fund manager Franklin Templeton.

“I’m so bullish on blockchain,” said Jenny Johnson at the first distinguished speakers series event of the year, organised by the Hong Kong Academy of Finance on Tuesday. “It drives out costs in the system and reduces the size of transactions.”

The academy, which brings together academics, industry leaders and the regulatory community to develop financial leadership, hosts a number of fireside chats each year with global financial heavyweights.

She said blockchain technology, like smart contracts, can make transactions dramatically cheaper, cutting out the “middle man” in many processes, and making systems more efficient.

The global asset manager has its Asia headquarters in Hong Kong and has steadily grown its presence in the city, even during the Covid-19 pandemic when many companies cut back. She said this was a tribute to the city’s importance as a connector and gateway to China.

“China is an important market. You can’t be a global asset manager without being able to have a presence here, in both Hong Kong and China,” she said. The Greater Bay Area and the Wealth Management Connect scheme provide a tremendous opportunity for an asset management company to grow, she added.

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