The 2024 edition of the Proof of Modern conference filled the grand corridors of the Louvre Palace in Paris,

The 2024 edition of the Proof of Talk conference filled the grand halls of the Palais du Louvre in Paris, France, with some of the biggest names and thought leaders in the Web3 space.

During a fireside chat on the main stage titled “What It Takes to Win in the Protocol Economy,” panelists Jenny Johnson, CEO of Franklin Templeton, and Mo Shaikh, founder of blockchain network Aptos , covered several key topics relevant to the industry.

This included what it really means to provide banking services to the world’s unbanked population, how the protocol economy is reshaping regulatory bodies, and much more.

Regulations and regulatory bodies

It is well known that regulatory bodies around the world are urgently working to put in place measures that address the cryptocurrency and blockchain sector more precisely and effectively.

Johnson highlighted the progress being made in Europe through the Regulation of Markets in Crypto Assets (MiCA), which has emerged in recent years, and the “sandbox approach” in Singapore, where regulation of the sector will be shaped by different experiences.

She also mentioned that “Hong Kong has been very visible in trying to attract businesses. The UAE has been very forward-thinking in its thinking on this: you have to be a resident of the UAE.

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However, the U.S. Securities and Exchange Commission (SEC) has been slow to develop regulations for local projects, even though the country has one of the most active environments for cryptocurrency, blockchain development and Web3. According to Johnson:

“In the case of the SEC, I think there’s a little bit of fear of being wrong. What do you call security, and what do you not call security?

Johnson said the SEC does not intend to be involved in every aspect of regulation, such as overseeing a token in a real-value game.

Instead, she said the regulator is “trying to be thoughtful,” saying that, from her experience working with them, “they’re really interested in learning and doing things right, and their mandate is to protect the consumer.

Sheikh supported these sentiments, saying that always when there is a new entry into the market, regulators are “trying to understand their role…and the SEC is trying to understand that as well.”

He said regulators are now considering what tools they need to properly regulate and monitor the sector’s digital assets and the companies and projects behind them.

“We now need to think about the tools that regulators need to be able to achieve this. So we’re seeing an evolution on the part of regulators who are now also trying to build the internal capabilities that financial institutions need to be capable of.

Non-bank banking

The two leaders also discussed how these new systems, whether regulated or not, have been catalysts for the emergence of a whole new market in a world where banks are sometimes inaccessible to users.

The Sheikh said:

“A lot of times people don’t have a bank account. Sometimes that’s the wrong way to look at things. It’s not that they’re not banked, it’s that they’re not participating in the digital financial economy.

He noted that banks may be physically far from where they are located, but “now with a mobile device, (users) can access them.” You can use Access Network instantly in the palm of your hand, enabling cost-effective, limitless streaming.

However, Johnson added that the problem is not just the distance from the banks. Despite telephone access, traditional financial service models in the current system are “expensive”. This is where decentralized financial services in the Web3 space become relevant.

“I only have $10 to open a bank account, which is not enough to access this market. Now we will be able to allow people with much less money to participate and open accounts.

She said this opens up the market so that more people not only have access to basic financial services, but also more options such as investing and retirement planning – “which is very important if the “We are all living longer”.

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