Ripple CEO warns companies to hold Bitcoin, facing the Biden administration

  • According to Ripple CEO Garlinghouse, Joe Biden may have an eye on Bitcoin’s alleged hostility to the climate.
  • Public companies could be forced to pay attention to new federal regulations.

Ripple’s CEO, Brad Garlinghouse, has warned public companies in a recent tweet against investing in Bitcoin (BTC). The warning was written by Ripple’s CEO in response to an article in the New York Times listing some early goals of the Joe Biden administration.

According to the NY Times, Biden, unlike Donald Trump, could put a renewed focus on climate change and, among other things, rejoin the Paris Agreement, sign implementing regulations to reduce emissions and reverse energy decisions. According to Garlinghouse, Biden could demand that all publicly traded companies disclose their greenhouse gas producing activities.

In view of this, according to Garlinghouse, the Biden administration could also focus on companies that hold Bitcoin. The Ripple CEO was referring to the ongoing adoption of Bitcoin by companies as a reserve currency, a trend that has received a lot of attention in recent weeks due to the publicly announced investments of MicroStrategy and Square.

In his Tweet, Garlinghouse took up the narrative repeatedly propagated by Ripple in recent weeks that Bitcoin is harmful to the climate, while a “greener” alternative is available with the XRP Ledger and the XRP token. The Ripple CEO speculated that Biden, might have an eye on Bitcoin’s alleged climate hostility and highlighted Square as a company that may have to watch out for new federal regulations:

Biden to require public companies to disclose climate change-related activities and GHG emissions in their operations. Love to see the action on climate change – first NYDFS, now this. Public companies holding BTC (ahem Square) — may want to pay attention.

However, Garlinghouse’s statement may surprise other observers as well. Only in September, when MicroStrategy made its investment in BTC public, he described the move as “bold and brilliant”. However, the possible change in the US leadership seems to have revised Garlinghouse’s assessment.

As CNF reported, Square made headlines in October when it became known that the company had included 4,709 Bitcoins in its balance sheet holdings as an alternative to the US dollar. The company run by Twitter’s Jack Dorsey thus invested about 1% of its available cash in BTC.

However, the first mover in the corporate adoption of BTC was MicroStrategy in August, a publicly traded technology company that purchased a staggering 38,250 Bitcoin as reserve currency as a hedge against U.S. dollar inflation and has since made huge profits thanks to the recent Bitcoin rally.

About Author

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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