Ripple’s CEO Brad Garlinghouse said he believes China is ahead of the United States as both countries wade through the regulatory waters of burgeoning crypto space.
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As a member of the Digital Chamber of Commerce Parallel Summit on July 17, Garlinghouse expressed his admiration for China’s approach to crypto space. “It kind of amazes me,” he said.
Does China see the potential?
China’s position comes from an appreciation of the potential of cryptomonies, Garlinghouse said. He explained:
“I think they’re realizing that some of these technologies may in fact be very fundamental to the future functioning of financial systems, and they want to make sure they have their essential capabilities.”
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Does regulation give confidence to entities?
In offering a justification, Garlinghouse mentioned the regulatory classification of Bitcoin and Ethereum as an example.
The U.S. regulators ruled in 2018 and 2019, classifying Bitcoin and Ethereum not as securities but as commodities. Such decisions now give companies and individuals more confidence in their holdings of these assets, explained Ripple’s CEO.
“Today, because of the mining control of Bitcoin and Ether in China, these are technologies controlled by China,” Garlinghouse said. “Twenty-five years ago, the United States was a leader in making the Internet what it is today, but part of that is due to regulatory clarity,” he added.
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The Corona Millionaire leader said that there is currently the same possibility of similar progress on blockchain, although the United States has not taken advantage of that opportunity, noting instead its focus on other technologies such as 5g.
As crypto space remains awaiting new regulatory decisions for the thousands of other assets in the market, Ripple’s XRP asset is seen as a potential asset, with no firm guidance on a decision.