- Brad Garlinghouse, CEO of Ripple, described how China has taken the lead in blockchain and fintech and that the US could lose out.
- Ripple is ready to work with government and financial institutions worldwide to promote the adoption of digital assets like XRP.
The global race for market leadership in blockchain and fintech is entering the next round. Some countries such as Malta or Switzerland are considered a “Blockchain paradise” due to their simple and clear legal situation and have already attracted many well-known companies. Ripple CEO Brad Garlinghouse, however, once again criticized the attitude of the USA.
China will overtake the USA
Garlinghouse describes on Twitter that the US regulators have stood still for too long and that now is the time to promote innovation and improve site conditions. China is penetrating further into the market every day, promoting blockchain innovations with subsidies and has chosen the further development of the blockchain as a top government goal:
U.S. regulators: now is the time to step up and lean into digital currencies. Remaining complacent is actually setting us back, while China’s grip on both crypto and fiat payments becomes stronger.
Ripple also contradicts the widespread opinion that global players in the blockchain industry are not willing to cooperate with regulators to create better standards in legislation and other areas:
One caveat – public digital assets such as XRP are not exempt from US (or global) financial supervision – in fact the opposite. Responsible actors who use these assets want to work with regulators, not against them.
According to Garlinghouse, the digital yuan will have a major impact on the global economy and could make the dollar obsolete as a global reserve currency in the long run. In China, more than 80 percent of the population, or more than 1.2 billion people, already use their smartphones to pay digitally.
As a first step, China can use digital yuan to achieve far-reaching improvements and faster remittances at home, but the true extent will only become apparent when China brings the digital yuan into business and economic relations with foreign countries, Garlinghouse said:
However, with 80 percent of smartphone users in China already using mobile payment platforms, the real benefits will come as China’s economic and strategic influence expands abroad.
Multiple billionaire and Bitcoin bull Mike Novogratz also criticized in the past that the United States of America will lose the leadership in the Blockchain and Fintech area if the local regulatory authorities continue to oppose innovations in this area. China’s President Xi has already stressed on several occasions that the acceptance and use of blockchain and digital assets will be crucial for the country’s continued supremacy.
Ripple pushes regulation in USA
At the end of last year, Ripple set up a subsidiary in Washington D.C. in order to cooperate more closely with the local regulatory authorities. Craig Philipps, former advisor to the US Treasury Department, has also joined Ripple’s board of directors. Chris Larsen joined the Alliance for Innovative Regulation (AIR) last year, which aims to bring together politicians, financial institutions, regulators and executives from the fintech industry to drive adaptation forward.