Blackmoon CPO Says Blockchain Regulation Is Stifling Crypto Asset Tokenization
Blackmoon CPO Says Regulation is Stifling the Blockchain
Asset tokenization is becoming quite popular in the world of fintech. The practice is causing even more institutional investors to join the Blockchain. However, some experts still believe not everything will be tokenized. One such expert is the Chief Product Officer at Blackmoon, Moshe.
The CPO Has Reservations
Mr. Moshe said that some things would not be tokenized. He explained a major issue today is that many companies were diving into the blockchain sphere without asking themselves why they were doing it.
Moshe claims it is important to ask why the blockchain matters before trying to use it. For now, he is of the opinion that blockchain is much tougher to use. For one, it is quite hard to find developers who understand Solidity that can create complex systems.
He went on to claim that latency objectives were not being met. In fact, he said there were many reasons not to use the blockchain than there were to use it. According to the CPO, it is better to build an ordinary system than to build one based on the blockchain.
Blackmoon Focuses On Tokenizing Assets With ‘Intrinsic Value’
Moshe said that Blackmoon had split the money pie into two. There were financial assets, which expire, and those that do not. For him, those that do not expire were currency and equities. Everything else in the financial world will expire.
For him, the difference is where an asset draws its value. He said assets that expire gain their value from intrinsic decay. Thus, Blackmoon would focus on investments that have intrinsic value. The CPO said that Blackmoon was different from other blockchain-powered platforms because of their focus on intrinsic value.
Asset Tokenization Is The Second Wave Of The Blockchain
In terms of tokenization, this is the second wave where the blockchain will go mainstream. The first wave came from the idea that the Whitepaper of Bitcoin revealed that a digital asset, which is not copyable could have value.
Regulation Is Killing The Blockchain
The CPO says the second wave is the wave of tokenization. However, he said that there was something lost to everyone relating to finance and the blockchain. Right now, everyone is coming up with an idea and then self-regulating about what they should not do.
In the blockchain world, it is a huge problem. Everyone has a tool that can offer so much functionality. However, everyone is trying to self-regulate or are being regulated by the authorities. The problem was that the idea of regulation does not really work with the blockchain.
Despite this, he said there was hope. Right now, the regulation is keeping the blockchain from achieving its full potential. This would change in the future. As projects continue to come to the edge and challenge the rules, things will change for the better. For Blackmoon, this would present a huge opportunity. The CPO said that when the moment for expansion beyond regulation came, he and his team would already be waiting for it and ready to make full use of the freedom.