Commenting on the importance of regulation in the technology sector, Brad Garlinghouse, CEO of Ripple, said that introducing regulations will lead to blockchain and cryptocurrency adoption.
Garlinghouse made these remarks while talking to the Deputy General Counsel, Ross Leckow, of the International Monetary Fund (IMF) at the Singapore Fintech Festival. The topic of their discussion revolved around the regulatory frameworks emerging in the Association of Southeast Asian Nations (ASEAN). Some of the ASEAN members include Singapore, Indonesia, Thailand, Malaysia, Philippines, among others.
“Regulatory clarity has a huge ability to drive digital asset and blockchain adoption. It is surprising how many markets still have uncertainty,” said Garlinghouse.
The ASEAN market has set clear regulations for blockchain and cryptocurrency, but they face challenges in correspondent banking. Hence, Ripple has focused its attention on this sector, “Nearly 50% of all of our global customers are based in the region, and our Singapore headquarters continues to be a growth engine for Ripple — expanding by 200% in the past year.” Garlinghouse added that Thailand has not only supported this new technology, but its regulations has even legalized XRP.
Ultimately, Ripple plans to introduce the Internet of Value — a term coined by the company — to allow instant and economical cross-border payments.
Meanwhile, Leckow assured Garlinghouse that the IMF plans to support these countries in creating proper regulations without suppressing development in blockchain and cryptocurrency projects. In fact, IMF’s Fintech advisory board includes Chris Larsen, co-founder and former CEO of Ripple.
Last month, in an interview with financial news network Cheddar, Garlinghouse said that XRP is “very clearly decentralized”. He justified his statement by stating that even the CEO of the company is unable to change transactions or alter the ledger.
Garlinghouse also spoke against critics who spread false information regarding Ripple’s decentralized nature. He claimed that some of these people have an economic interest in bringing down XRP. The rest of these people belong to the group that believes government and regulations shouldn’t exist in the crypto sphere, he explained at the CB Insights Future of Fintech 2018.
Garlinghouse added that XRP is in the midst of a “crypto holy war”, but it knows that the only way to enable the Internet of Value is by collaborating with financial institutions and following proper regulations.
Featured image from Flickr.