Brad Garlinghouse, CEO of Ripple, said he believes China is ahead of the United States as both countries wade through the regulatory waters of the burgeoning crypto space.
As a member of the At the parallel summit of the Digital Chamber of Commerce that took place on July 17, Garlinghouse expressed admiration for China’s approach to the crypto space. “Somehow I’m surprised,” he said.
Does China see the potential?
China’s position is based on an assessment of the potential of cryptocurrencies. postulated Garlinghouse. He explained:
“I think they recognize that some of these technologies can actually be very important for the future functioning of financial systems, and they want to make sure that they have their essential capabilities.”
Does the regulation give companies confidence?
By reasoning Garlinghouse cited the regulatory classification of Bitcoin and Ethereum as an example.
Regulators in the U.S. decided in 2018 and 2019 and classified Bitcoin and Ethereum as commodities rather than securities. Such decisions are now made Companies and individuals more confident in participating in these assets, said the CEO of Ripple.
“Because of the mining control of Bitcoin and Ether in China, these are technologies that are controlled by China today,” said Garlinghouse. “25 years ago, the United States was a leader in making the Internet what it is today, but part of it is due to the clarity of the regulations.” added.
The ripple leader currently indicated this there is the same possibility of a similar progress around blockchain, although the United States did not take this opportunity instead, it focuses on other technologies like 5g.
Since the crypto space is waiting for new regulatory decisions for the thousands of other assets in the market, Ripple’s XRP asset is considered a possible value without firm guidance for a decision.