[ad_1]
If Ripple closed, would XRP continue trading? Yes, CEO Brad Garlinghouse said recently, capitalizing on Litecoin’s success after its founder walked away from the project to support his case.
During a recent podcast, the Ripple executive said that while he has no plans to move away from Ripple anytime soon, he may be moving the company overseas as he believes the lack of regulatory clarity around XRP in the US is not beneficial. for the company. . According to Garlinghouse, eight different regulators in the United States say eight different things about XRP. For example, while FinCEN says it’s a currency, the IRS treats it as a property. “It’s not just about holding back XRP, it’s also about holding back the industry,” he said, adding that,
“We have to be on an equal footing to compete with other players”
The executive’s statements are revealing because they are in stark contrast to the CEO’s previous stance with respect to regulations. Last year, he expressed concern that Facebook’s plans to enter crypto-space with Libra would result in stricter rules for the entire industry. Indeed, in an open letter, Ripple appeared to be siding with angry American lawmakers as well.
While his previous concerns centered on whether regulators “bundled all cryptocurrencies into one bucket,” today, his concern is that XRP is currently banned from the list of digital currencies regulators have bundled.
According to him, this lack of regulatory clarity creates an atmosphere in which unclear assets underperform, continuing to note that this regulatory uncertainty has hindered progress in some key partnerships, most notably banks.
Ripple’s main focus is on cross-border payment solutions and banks are, without a doubt, an important part of this picture.
However, while there have been some partnerships with banks globally, most of Ripple’s business comes from partnerships with small and medium-sized payment providers.
This is something Garlinghouse attributes to the fact that huge banks make a lot of money by being the oligopolies of cross-border payments, which is why the smallest players are the first to adopt, are the most aggressive, and are willing to take the most risk.
While some such as CoinMetrics co-founder Nic Carter have suggested that XRP will never be used by banks, Ripple’s team believes it’s only a matter of time for XRP to be adopted as a universal asset bridge.
