Bitcoin’s transaction volume for 2023 has soared to an astonishing $36.6 trillion, vastly surpassing the combined totals of Mastercard and Visa. This staggering figure, which is more than four times Mastercard’s $9 trillion and nearly 2.5 times Visa’s $14.8 trillion, highlights Bitcoin’s substantial role in the financial ecosystem.
Jenny Johnson, CEO of Franklin Templeton, recently shed light on the disruptive potential of Bitcoin during the Wyoming Blockchain Symposium. According to Johnson, Bitcoin represents one of the most significant technological shifts in traditional finance (TradFi), alongside artificial intelligence. Her remarks underscore a growing recognition of Bitcoin’s impact and suggest that traditional financial institutions might be underestimating its transformative power.
Johnson’s comments reflect a broader trend of established financial players attempting to integrate cryptocurrency into their services. Both Mastercard and Visa are actively exploring how to incorporate crypto into their offerings. Visa has conducted several trials for new crypto products, while Mastercard is preparing to launch blockchain debit cards. Despite these efforts, Johnson argues that these initiatives fall short of addressing Bitcoin’s potential fully.
Bitcoin’s current value stands at approximately $60,933, with a market capitalisation of $1.2 trillion and a daily trading volume of $34 billion. Since August 2023, Bitcoin’s price has surged by 134%, a testament to its growing influence and acceptance. This rapid growth and its substantial transaction volume reinforce the notion that Bitcoin could significantly alter the financial landscape.
Franklin Templeton’s commitment to cryptocurrency is evident in its recent moves. The company has filed for an exchange-traded fund (ETF) that combines Bitcoin with Ethereum, pending approval from the Securities and Exchange Commission (SEC). This ETF aims to provide investors with exposure to the two largest cryptocurrencies. Should the ETF gain approval, Franklin Templeton plans to expand its offerings to include additional cryptocurrencies, with Solana being a potential candidate.
The firm’s enthusiasm for crypto underscores a broader shift within the financial sector. With developments such as Tether’s dirham-pegged stablecoin and Brazil’s approval of a second Solana spot ETF, the pace of innovation in the cryptocurrency space is accelerating. These advancements indicate that the crypto market is evolving rapidly, and traditional finance may need to adapt quickly to keep pace.
Johnson’s observations suggest that Bitcoin’s role in the financial sector is still underappreciated by many in TradFi. The sheer volume of transactions processed by Bitcoin highlights a parallel financial ecosystem that is expanding and maturing. As traditional financial institutions continue to grapple with integrating crypto into their frameworks, the potential of Bitcoin to revolutionise finance becomes increasingly apparent.
The future of Bitcoin and its relationship with traditional finance remains an open question. While institutions like Franklin Templeton are leading the charge in recognising and investing in cryptocurrency, the broader financial sector’s response will determine how quickly and effectively Bitcoin’s potential is realised.