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Ripple’s protracted legal battle with the Securities and Exchange Commission of the United States has kept the business and its cryptocurrency, XRP, in the spotlight. Brad Garlinghouse, the company’s CEO, highlighted his unhappiness with the lack of regulatory certainty in the US in a recent appearance on CNBC’s Squawk Box.
Garlinghouse asserted that other governments had already devoted “time and energy” in providing clarity that allowed entrepreneurs to create and investors to participate.
“There is a misunderstanding of how these technologies can be applied… In the US, there has been a lack of regulatory clarity.”
Ripple was rated 38 on this year’s CNBC Disruptor 50 list due to the quick speed of technical change that it has ushered in. Ripple’s network sends money across borders for banks and other financial organisations by utilising blockchain technology. The company’s liquidity service employs XRP as a “bridge” currency, allowing payment providers to execute cross-border transactions more quickly than conventional methods.
The XRP ledger employs the consensus algorithm and blockchain technology, which Garlinghouse believes may be used in “constructive ways.” He went on to say,
“We can unlock trillions of dollars of trapped capital to make the global economy more efficient. All the XRP that has ever been created has already been created, so there’s a zero inflation dynamic.”
A recent Wall Street Journal article titled “Ban Cryptocurrency to Fight Ransomware” specifically asserted that the existence of Bitcoin and other cryptos benefitted nobody except criminals and speculators. Highlighting the fact that the “toothpaste was already out,” Garlinghouse said,
“When we talk about ‘should we ban something,’ let’s make sure what we’re talking about.”
Calling the crime angle a curious one, Castle Island Ventures’ Nic Carter emphasized that blockchain transactions operated on a relatively transparent system and were “eminently traceable.” He further added,
“In absolute and relative terms, the dollar is used for illicit purposes far more than Bitcoin. We didn’t ban dollars…”
XRP was unable to withstand the latest market turmoil. At press time, it was trading at $0.97, just below the $1 level, after a weekly loss of 16.54 percent. XRP ranked sixth on CMC’s rankings, with a market valuation of $44.9 billion.