The Ripple CEO, Brad Garlinghouse, recently made his views known on the issues of government regulation and the legacy financial system. His comments were made during the Blockchain Connect conference that was held in San Francisco. Before coming to Ripple, Garlinghouse had worked for various other companies such as Yahoo! and AOL. Today, Ripple has entered into more than 100 partnerships with various financial institutions and companies. Most of these partnerships entail using the Ripple network to send money globally.
The Rise of Ripple
Ripple’s price has been on an upward trend since the middle of December 2017. Its highest point was around $4 on January 4th. Their December rise was caused partly by the multiple partnerships with various companies. Besides that, the crypto market in South Korea has played a role in helping the XRP coin reach a market cap of $100 billion. This made Ripple the first altcoin to get to this level. When major South Korean exchanges were taken off the CoinMarketCap listings, the coin suffered a drop of over $20 billion in its market cap. Since the start of 2018 though, it has announced more partnerships with various financial institutions globally. These partnerships have been with major companies and even central banks.
Views of the CEO on its Rise and Fall
On this issue of the meteoric rise and fall of the XRP coin, Garlinghouse said that it was difficult for anyone to predict any market. However, he added that he was not too focused on the rise and fall in the Ripple digital coin. According to him, the long-term value of the coin would be determined by its underlying utility.
His Views on the Regulatory Environment
The year 2017 was a big year for crypto regulation globally. This has included blanket bans on crypto in other nations. However, the US has still not been able to come up with solid regulations for crypto.
In December last year, the Federal Reserve chair said that the institution had no authority to regulate crypto. The chair explained that the Federal Reserve did not differentiate between fiat and crypto. Recently, the US Securities and Exchange Commission has issued various warnings and agreed to work with other regulators to come up with smart regulations.
According to the Ripple CEO, governments are not going anywhere. Thus, his company has taken the approach to work with the legacy financial system and the government. However, he has said that this has been received with some negativity in the crypto world. Garlinghouse said that the company had no intention of changing the existing laws. Instead, they would concentrate on working within the existing laws.
What do you think about the stance by the Ripple CEO on regulation? Leave us your thoughts in the comments section below.