EXCLUSIVE: Digital Assets Expert Forecasts 2024 As 'Sweet Spot For A Good Rally'

At Benzinga's Future of Digital Assets event in November, experts including Christopher Jensen from Franklin Templeton Digital Assets and Tania Reif of Senda Digital Assets discussed the 2024 investment outlook, with John Divine from BlockFills moderating the session.

During the discussion, which focused on Real World Assets (RWA), Jensen emphasized the role of stablecoins as tokenized RWAs in the industry. He also noted that his company has introduced BENJI, the industry's first tokenized money market fund.

Jensen said that not only tokenization of TradFi assets like funds is important, but also tokenizing other assets and expanding into the utility of these assets is important.

Tokenization RWA goes beyond just reducing costs; it's also about growth and generating new revenue streams. Jensen pointed out that RWA represents the capabilities and opportunities that "you could not do before the technology came in."

Reif noted that tokenization is paving the way for new market opportunities. She highlighted that central banks are adopting cryptocurrency as a tool for financial rebalancing in challenging periods. Governments often devalue their currency to adjust financial records, and in such situations, cryptocurrencies, particularly Bitcoin, offer effective solutions.

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It isn't just beneficial for emerging economies like Venezuela, Nigeria, and Lebanon; it's also relevant for developed economies. In these advanced nations, central banks often employ strategies to deflate their currency as a means of balancing their financial records, with maintaining financial stability as their primary objective.

Crypto emerges as the best solution for consumers when central banks inject liquidity and reduce rates, which in certain ways harms the economy and impacts the savings of investors.

Reif mentioned several catalysts for institutional investors to be attracted to the market in 2024 – regulatory changes, macro factors like supportive CPI, Fed pausing rates, and political risks which are good for crypto.

Jensen emphasized another driving force behind cryptocurrency's growth: the innovation pipeline. This is evidenced by consistent numbers of developers and a focus on developing infrastructure, setting the stage for the next major breakthrough in crypto. Additionally, Divine highlighted the importance of optionality in investments as a key catalyst in this field.

Reif described 2024 as a “sweet spot for a good rally,” indicating her optimism for significant market growth during that year. Meanwhile, Jensen pointed out the clear connection between AI and crypto, stating, “one unit of AI is technically a crypto token,” highlighting the integration of these technologies.

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Photo: Pratya Jankong