Regulatory relations head of Ripple: Uncertainty, biggest adoption barrier
The OECD Blockchain Policy Forum is a discussion that takes into account the influence of blockchain across various countries in the world. The recent OECD Blockchain Policy Forum kicked off in Paris on September 4 to 5 and the meeting centered a few points, but we will be focusing on the discussion on the implications of regulatory conditions to cryptocurrencies.
During this OECD blockchain Policy Forum, the newly appointed Head of Regulatory Relations of Ripple in Europe, Dan Morgan, talked on how the regulatory condition at the national and international level is affecting Ripple. Morgan said:
“in the last five or six years I have seen an evolution of regulators’ approach to a number of areas including open banking bit lending and crowdfunding, and what I can say straight away is that the view of crypto assets are moving very rapidly globally even compared to these recent developments.”
As we do know, Ripple is a blockchain technology company that aims to aid in real-time cross-border payments primarily for financial institutions. Ripple’s new Regulatory Head went on talk about the company’s services despite the regulatory policies around it:
“Sending money today is highly an efficient system of corresponding banking. The pre-funding account is expensive and slow; average international payment takes 3-4 days to settle… Ripple aims to create an internet value, to move money the way information moves today and to do that; we use DLT-based solution.”
He further went on to add that,
“there’s are two fundamental parts: first is connectivity, which is messaging and settlement, and we use our xCurrent solution for this to dramatically reduce cost, time, and it provides great certainty… but you still need to pre-fund nostril account overseas, which is estimated that 5 trillion dollars are locked up in these accounts. We see a real potential to remove the need for pre-funding and address the second part of this puzzle which is liquidity… We feel that using digital asset exchanges to bridge currency to connect fit not as a replacement; it’s a solution to this.”
Concerning Ripple’s regulation, Morgan said:
“The biggest barriers to adoption is uncertainty, particularly for institutions. So we applaud the taxonomy, being undertaken by the OECD, but also at an industry body level with the GDF and the Digital Chamber of commerce. We also feel that many of the current rules apply. None of the threats are new so principles of consumer’s protection, AML, safety, and soundness should also apply to feel that regulation take a case-by-case approach and focus on activity base.”
The top executive of Ripple Labs also said that,
“consumer detriments are one of the industry’s weak points, so we must ensure consumers’ protection… and principle based is the way forward. So ultimately, we think that regulators who take on the case-by-case approach or risk-by-risk approach will fundamentally be capturing the benefits with us on a range of use cases.”
Consequently, Ripple has been at the center of regulatory policies and the biggest debate is whether it is a security or not. The U.S regulators still haven’t decided if it is a security or not – but the debate continues. Nonetheless, Ripple is said to offer utility and solve real-life problems tied to liquidity and cross-border payments.
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