[Panel Discussion]
<Session 1> A New Wave in the Virtual Asset Market
Advanced countries such as the US and Japan incorporating blockchain institutions
Operating Bitcoin based on intrinsic value like stocks
Token securities based on blockchain, low cost and stability
Financial News and Token Securities Council are currently hosting a panel discussion on ‘New Trends in the Virtual Asset Market’ at the Small and Medium Business Central Hall in Yeouido, Seoul on the 4th, as part of ‘Talkonomy Korea 2024’. Starting from the right, the session is moderated by Professor Kim Hyung-Jung of Hoseo University (Chairman of the Korean FinTech Society), Christopher Jenson, Vice President of Franklin Templeton, Mitsuo Teramoto, Executive Director of Osaka Digital Exchange (ODX), and Kim Jun-Woo, Co-CEO of CrossAngle. Photo by Seo Dong-Il, Reporter, ‘The meeting of Bitcoin and Exchange-Traded Funds (ETFs) has been suggested to reduce risk and volatility. ‘,
, ‘At the ‘Talkonomy Korea 2024’ panel discussion hosted by Financial News and Token Securities Council on the 4th at the Small and Medium Business Central Hall in Yeouido, Vice President Christopher Jenson of Franklin Templeton stated during the panel discussion, “As spot ETF trading of virtual assets matures, volatility will also decrease, and virtual assets will become more similar to other assets.” ‘,
, ‘The panel discussion was moderated by Professor Kim Hyung-Jung of Hoseo University (Chairman of the Korean FinTech Society), with Vice President Christopher Jenson, Executive Director Mitsuo Teramoto of Osaka Digital Exchange (ODX), and Kim Jun-Woo, Co-CEO of CrossAngle in attendance. The panelists agreed that advanced countries such as the US and Japan are quickly incorporating blockchain into their regulatory frameworks. ‘,
, ‘■”Bitcoin is like a gold reserve” ‘,
, ‘Professor Kim Hyung-Jung noted, “In Korea, there is still a prevalent perception that ‘Bitcoin is a risky asset with no intrinsic value, and ETFs are even riskier as they are derivative products’.” ‘,
, ‘In response, Vice President Jenson stated, “I believe that Bitcoin is an asset that stores value digitally, much like gold,” and explained, “Even gold only amounts to around $1 billion when discounted for discounted cash flow (DCF). The rest is related to currency premiums.” ‘,
, ‘He further emphasized, “Bitcoin fits a similar context,” stating, “There is already networking economic activity happening with Bitcoin, and there are fees present, allowing for the calculation of intrinsic value.” He added, “Investors with varying opinions on Bitcoin also prefer open-source protocols.” He noted, “When profits are distributed, it looks like dividends, and burning coins is similar to selling treasury stocks, making it easier for institutional investors to accept.” ‘,
, ‘However, Bitcoin spot ETFs have not yet been approved in Korea, as negative perceptions towards virtual assets still prevail. ‘,
, ‘In light of this, CEO Kim Jun-Woo shared, “One of the ongoing concerns when doing virtual asset and blockchain business in Korea is the usability of ‘why blockchain should be used’.” ‘,
, ‘Kim stated, “In order to overcome negative perspectives and practical suggestions, there must be good services,” and said, “With the emergence of artificial intelligence (AI) chatbots such as GPT, things have changed. It’s important not to emphasize technical advantages, but to focus on creating services that can meaningfully alleviate inconveniences in daily life based on technical advantages.” ‘,
, ‘■”Cost savings benefit investors” ‘,
, ‘The discussion also delved into token securities. Franklin Templeton previously launched a tokenized money market fund (MMF) in 2018. Tokyo Digital Exchange also trades token securities. ‘,
, ‘Vice President Jenson explained, “We have already launched this product on the Stellar and Polygon blockchains, and are in discussions with other blockchains. As of now, around $400 million has been invested in these products.” ‘,
, ‘Global companies are also facing trial and error in pioneering new markets. Executive Director Teramoto stated, “The trading volume of token securities on Osaka Digital Exchange is not high at the moment,” but added, “However, Japanese customers seek stable returns and long-term price increases. Japanese-style token securities are designed for this purpose.” ‘,
, ‘Vice President Jenson also mentioned, “Regulated token securities take a long time to be approved and put into products,” and said, “But as the product is already in place, efforts are being made to increase its utility.” ‘,
, ‘However, the use of blockchain is seen as having greater advantages in cost savings and ensuring stability. Vice President Jenson argued, “Operating on-chain saves significant costs. It’s not just 10% cheaper; it’s 10 times cheaper,” and stated, “This translates to higher returns for investors as a benefit. Public blockchains also provide added advantages of transparency and stability.”