Brad Garlinghouse, Ripple CEO, recently claimed that US regulators should pay attention to crypto sector, especially amidst the news about that China was close to launching its stable coin.
Risk of loosing competitiveness. Garlinghouse published his commentary on Twitter stating that it was high time to enter the digital money industry. He mentioned that the USA were lagging behind as China was becoming stronger in both cryptocurrencies and fiat payments. He also noted that the country’s regulators had been stood still for too long, and it was high time to integrate and develop innovations,
“I appeal to the US regulators: it’s time to get up and pass to digital currencies. Our complacency is literally throwing us back while China’s supervision of crypto and fiat payments is becoming stronger. Can Chinese digital currency replace dollar? Easily! The American economic strength and geopolitical power are at stake”. The expert calls US regulators to introduce innovations in the field of blockchain and cryptos since the country falls behind China in this issue. PRC continues to reach significant success in the development of digital yan, holding the real testings of the Central bank’s currency in some cities. Such partners as Starbucks, Subway and McDonalds are participating in the testings in four large cities of China. While trade tensions in USA-Chinese relations have reached its peak, Brad Garlinghouse encourages regulators to promote innovations in the field of digital currencies in order to be able to compete with PRC. The initiative regarding digital currency has been discussed for over five years, and the Chinese central bank is now close to its implementation. Chinese CBDC may affect the world economy.
Many of the industry experts consider Chinese digital currency to be a real threat to the weakened global dominance of the US dollar. More than 80% of Chinese population, or over 1.2 billion of people are using their smartphones to pay for goods and services. Besides, the technology may be used for acceleration of money remittances and enhance its fulfillment in household conditions. But the real meaning will become obvious when China integrates the currency into its business and economic relations with other countries. In the recent past the well-known BTC bull and billionaire Mike Novogratz warned that the USA could lose its leadership in fintech and blockchain if local regulators continued acting against financial innovations. Chinese president has repeatedly underlined that the use and acceptance of digital assets may have a crucial meaning for further development of the country. Ripple expands its global team for regulation and joins the blockchain association.
Garlinghouse used to be an active proponent of the regulatory clearance for crypto industry, especially as regards XRP. The previous report showed that Ripple Labs was the first crypto firm that had opened an office in Washington, Columbia, to develop closer relationships with law entities.
Last year in October Ron Hammond, Michael Bond, Susan Friedman (former CFTC advisor) and Craig Phillips (former US Treasury advisor) joined Ripple board of directors. The company based in San Francisco included these outstanding leaders in its board of directors what would help in establishing close partnership with financial institutions, regulators, politics and leaders of fintech industry.