Finance CEO Sends Warning Regarding Blockchain Potential

July 21, 2021

Unless you’ve been living under a rock the last few years, you probably have heard about blockchain, crypto, and similar digital technologies that promise revolutionary results. That’s certainly a bold statement, but many enthusiasts of this young technology are excited about the various potential applications in the business world. Blockchain might not be the miracle that some are claiming, but it will certainly be a major gamechanger for certain sectors of the economy.

Finance is one area in particular that will definitely experience changes with blockchain, and leading experts in the field are sending out warnings about the likelihood that blockchain will usher in a massive wave of change. According to Jenny Johnson, CEO of investment firm Franklin Templeton, blockchain will be “hugely disruptive” for those dealing with investments and banking.

"The tokenization and blockchain are going to be hugely disruptive to the financial services industry," Johnson said. "We are at the very, very early stages of that. "I'm not even sure folks completely understand how disruptive that could be. It is something I'm spending a lot of time on — my team is spending a lot of time — just trying to think about and understand."

The decentralized nature of blockchain makes new forms of investing possible, which would not require the administrative hurdles and regulatory compliance that standard investments require. It would also enable novice investors to claim stakes in major illiquid assets normally reserved for high profile financiers, like sport teams or real estate projects.

Johnson has stated that, while she is skeptical of bitcoin and cryptocurrencies, she does believe that blockchain’s existence will result in real consequences, both good and bad, for the future of investing. Her comments about blockchain’s disruptive nature should be understood as less of a warning, but as a reminder to the finance world, that blockchain is here to stay. Whether the banks like it or not, they must address this rising technology if they want to maintain status as leaders in the finance world.

Edited by Maurice Nagle

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