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3 Predictions on the Future of Cryptocurrency

3 Predictions on the Future of Cryptocurrency
Written by publisher team

Not surprisingly, Brad Garlinghouse is optimistic about the future of the cryptocurrency business. He is the CEO of Ripple, a cryptocurrency exchange whose XRP cryptocurrency is regularly the fourth largest cryptocurrency in the world by market capitalization. According to Garlinghouse, who spoke this week at the virtual Collision conference, digital currencies are here to stay, and regulators must work to ensure that the United States is not left out of the global crypto future.

Meanwhile, Ripple is currently in the crosshairs of regulators. The Securities and Exchange Commission is suing the company for not registering XRP as a stock offering. The agency argues that XRP is actually an investment contract, not a cryptocurrency like bitcoin and ether. The SEC also alleged that Garlinghouse and other Ripple executives made millions in XRP, while failing to prove that the digital token had any practical use. The lawsuit caused the price of XRP to drop significantly (the current price is $1.31 almost 60 percent below its 2018 high of $3.31), and several crypto exchanges decided to run the token from their platforms.

Ripple is fighting the lawsuit with the help of former SEC chair of the Obama administration, Mary Jo White, arguing that the United States is one of the only countries classifying XRP as a security offering rather than a cryptocurrency. Garlinghouse argues that the SEC lawsuit, combined with the unclear regulatory environment in the United States, could leave the nation behind in the global crypto market.

“There are a lot of players in the cryptocurrency industry who have chosen to establish and reside outside the United States. And I think one of the worst things that can happen, and I say this as a U.S. citizen and as a resident here in the United States, is that this is not good for the industry,” Garlinghouse said. The encryption here is local.”

Here are three quick tips on what’s next in the future of cryptocurrency from Garlinghouse’s interview at Collision.

1. Cross-border payments and global partnerships will be crucial.

Crypto has long been a popular way for migrant workers to send payments to their families in their home countries without dealing with exorbitant transaction fees. Due to its dispute with the Securities and Exchange Commission, Ripple has lost a partner in MoneyGram, a major payment platform for immigrants. It recently bought a 40 percent stake in Malaysian financial services firm Tranglo, which is still awaiting approval from government regulators.

Since the SEC dispute, 100 percent of XRP’s clients are located outside the US. A large part of Ripple’s base is now located in Southeast Asia, because regulators in Singapore and Thailand have designated XRP as a digital asset. Business is also booming in the MENA region, as well as Saudi Arabia and India. Garlinghouse noted that cross-border payments represent billions of dollars of transactions every day.

“Remittances are clearly a very expensive and expensive payment mechanism, and we are partnering with our customers to make it more efficient,” Garlinghouse said.

2. NFTS is here to stay.

Garlinghouse believes that NFTs, or non-fungible tokens, have more staying power than some think. He noted its many use cases, particularly when it comes to digital collectibles.

“Growing up, I had a baseball deck of cards, and being able to trade baseball cards was pretty frivolous. If you’re able to issue the NFT associated with each individual baseball card, the traceability increases. When you talk about art, collectibles, and music, there are a lot of use cases here that are compelling. very much,” Garlinghouse said.

He also said that XRP is currently working to ensure that its platform will be able to support NFTs.

3. Central banks should get involved in cryptocurrencies.

China, Cambodia, the Bahamas and other countries have launched digital currencies through their central banks in recent months. The Federal Reserve is currently working with the Massachusetts Institute of Technology to explore the feasibility of a US-based digital currency

Garlinghouse said that the absorption of digital currencies by the world’s governments will only help the cause of independent cryptocurrencies such as XRP.

“If you think about it, whether it’s a central bank or not [issues] “As a digital asset or a tokenized currency, you still have a need for liquidity and settlement between other countries,” Garlinghouse said.

He said that if central banks opt for digital currency, it will increase the demand for more efficient cross-border transactions. “Today you have liquidity between 100 different currencies in the world. If you can have that liquidity [with one] This is the bridge between a lot of currencies around the world, then [transactions] It can be managed more efficiently.”

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