The co-founder and executive chairman of Ripple, Chris Larsen, is revealing his vision for crypto’s path into the mainstream.
At the Crypto Finance Conference in Half Moon Bay, California, Larsen told Cheddar cross-border payments will prove to be the killer app for crypto and blockchain.
“We’ve been doing this now, focusing on cross-border payments for enterprise for four years-plus. So it’s good to see people finally realizing ‘yes’, this is the area that’s going to have the highest impact. We think this really is the killer app for this whole blockchain movement.
But we’ve been at it for longer than anybody. And what matters here is what corridors you have, the number of partners. We’ve got hundreds of banks and payment providers, remittance companies not just in experimentation mode, but full production mode.”
Larsen also offered his take on a series of lawsuits against Ripple alleging XRP is a security controlled and issued by the company.
“I think what’s really important is that any digital asset to be valuable has to be serving an actual use case. It can’t just be speculation. Obviously a lot of the market today is really speculative. But we think over the long run it’s going to be that combination of deep liquidity, market makers, institutional bets being made. But very importantly, it has to have a use case.
We think the use case for the XRP ledger and XRP the digital asset is really around, initially, reducing the cost of liquidity for cross-border payments. Long-term, though, we think it’s a key winner in this race to be another digital asset for the world for all kinds of use cases. It’s a long-term play. Has to have value. Can’t just be a store of value for store of value’s sake. Has to actually have a use case. And that’s how we see this evolving.”
According to Larson, questions about the centralization of XRP and the fact that the cryptocurrency is pre-mined are part of a “religious war” and an effort to create fear, uncertainty and doubt.
“I think this comes from the Bitcoin community, the Ethereum community. There’s a religious war going on between platforms, and that whole idea around centralization is bogus. Please look – it’s an open-source system. It’s permissionless. You’ve got 140 public validators. Ripple has like 7%, the company, of those.
If Ripple went away tomorrow, XRP continues as an open source, permissionless ledger. We would say it’s easily as decentralized as Bitcoin or Ethereum. In some ways, you’d argue, even more so, given that proof-of-work leads to more centralization as you’re seeing with Bitmain in China, and whereas consensus systems become more and more decentralized. Again, it’s important to remember this is a religious war between these platforms. You see a lot of nonsense and FUD out there. Look at the facts and I think, you know, it’s pretty clear.”
India’s proposed crypto ban is ‘corrupt’ says Tim Draper
- India’s proposed bill is “pathetic and corrupt,” Tim Draper.
- Draper is known for his public support for Bitcoin and freedom to use cryptocurrencies.
Following a leaked bill from the India government proposed a blanket ban on cryptocurrency, Tim Draper, a Bitcoin support and investor in Tezos has come out to condemn the move. The outspoken investor has recently advocated Bitcoin to the government of Argentina. He refers to India’s proposed bill as being “pathetic and corrupt.”
He wrote on Twitter:
“People behaving badly! India’s government banned Bitcoin, a currency providing great hope for prosperity in a country that desperately needs it. Shame on India leadership.”
His comments have not been received well by the people on Twitter with some saying that Draper has not confirmed the developments and is acting on hearsay only. Draper is known for his public support for Bitcoin and freedom to use cryptocurrencies and does not support government involvement in terms of regulating the space.
As reported by FXStreet, a lawyer in India shared what he referred to as the evidence of a draft law that could be used to ban cryptocurrencies in India except for the ‘Digital Rupee,” a digital asset that will be issued and backed by the Reserve Bank of India.
More on India’s leaked draft bill: India’s battle with crypto ban continues: “Digital Rupee” to be only the digital currency
France’s Financial Watchdog Proposes ‘Voluntary’ Regulatory Framework for Crypto Firms
The Financial Markets Authority (AMF), France’s top financial organization, plans to release an experimental regulatory framework for crypto firms later this month, according to a Reuters report.
The rules will include capital requirements, tax mandates, and consumer protection protocols – which “crypto-related firms will voluntarily abide by” in exchange for regulatory approval, reports Reuters.
Anne Marechal, executive director for legal affairs at the AMF, called the experimental arrangement a “precursor” for international crypto-specific legislation, rather than the mismatched application of financial regulations written prior to the advent of the asset class.
This is not the first time France has unveiled a “tit for tat” regulatory scheme. In April, the AMF released a requirement for banks to open accounts for crypto firms that “opt in” to being regulated. Part of the PACTE law, crypto exchanges and custodians were also extended the “option” to attain an operating visa.
At the time, Finance Minister Bruno Le Maire suggested the European Union follow “the French experience” by using the PACTE guidance to set up a “single regulatory framework” for digital assets in the EU single market.
These relatively unrestrictive legal measures were taken to promote the growth of small and medium-size businesses. While some governments, organizations, or industry leaders call explicitly for self-regulation or no regulation, many believe clearer rules regarding the sale, distribution, trading of cryptocurrencies would stimulate, rather than hamper, the industry.
Frederic Montagnon, the co-founder of LGO, a crypto exchange looking to expand into France, told Reuters, “When you are an entrepreneur, the worst that can happen to you is to set up your business where there is no regulation, to see an adverse regulatory framework later imposed that jeopardizes your whole business.”
Marechal said “several” crypto exchanges, custodians, and hedge funds are in dialogue regarding the regulatory framework with the AMF, which is also set to approve “three or four” ICOs.
Specifics will arise when the watchdog publishes the regulatory guidance.
For each U.S dollar in BTC spent on the darknet, $800 is laundered, says report attacking Steven Mnuchin’s claims
Following the crypto-focused briefing by the U.S Treasury Secretary, many have drawn conclusions that best fit their financial interests. But, with Steven Mnuchin linking Bitcoin to enabling illegal activities, hardcore crypto-enthusiasts have taken the criticism personally. In an attempt to dispense of this notion, Messari.io published a detailed report to compare the top fiat’s contribution towards fraud, in comparison to the world’s leading cryptocurrency, Bitcoin.
In the report titled, “Bitcoin in the grand scheme of things,” BTC’s contribution toward illegal activities was dwarfed by the strongest of fiat establishments. Through a combined analysis of data from Chainalysis and United Nations Office on Drugs and Crime, the report claimed,
“For each $ (U.S. Dollar) in BTC spent on the darknet, at least $800 is laundered.”
While this revelation may come as a shocker to traditional financial giants, it is important to note that messari.io has considered the total volume of BTC spent on the darknet, which largely comprises of legitimate transfers.
Further, the one-on-one comparison also showed that global economies recorded an explosive increase in their stock of narrow money [M1] i.e. physical money and digital assets. With the European Union leading this race with 0.87 billion in supply, it’s currently 98% higher than BTC’s total supply expected to be recorded sometime in 2020 (considering BTC’s price to be $10,000).
The report also considered the Federal Reserve’s balance sheet from 2009, the year when BTC was launched. The report revealed that the Fed’s balance sheet showed a currency issuance rate of 13,664%, against BTC’s modest 12 billion.
This report was shared by, @fmoulin7, over a tweet directed towards Mnuchin, which read,
“Just a quick reminder… @stevenmnuchin1”
Most leaders within the cryptoverse expect the U.S. government to allow the use of crypto within the limits set by the nation’s ruling government. The remaining however, retain their optimism for a BTC-dominated future, with or without the support of the government.