Let’s analyze an interview with Ripple CEO Brad Garlinhouse, where he answered key questions from XRP community. What is the future for Ripple XRP in light of the lawsuit against the SEC? How will XRP ledger change in next 3-5 years? How much funds will be processed by ODL service and what other functions will XRP get?
At the beginning, Garlinhouse told a little of his biography when he learned about Bitcoin, and also shared his opinion on the future of cryptocurrencies. In his understanding, Bitcoin and, of course, XRP have it. When asked why he did not mention Cardano or other coins, Brad replied that he is not a trader and does not follow the market itself. But even before he started working at Ripple, he was an investor in Protocol Labs of Filecoin developers, so he also put this cryptocurrency on the list of promising ones next to Bitcoin and XRP.
As for the trial, Garlinghouse notes that SEC is wrong in fact and wrong by law, but the judicial system is not working quickly and the process is likely to drag on for a rather long period. At the same time, Ripple’s head notes that he has long advocated for clear rules for cryptocurrencies, according to which investors and users could participate in this process.
If you take the last three weeks, Garlinghouse calls the satisfaction of Ripple’s petition to disclose SEC documents, in which they decided not to recognize Bitcoin and Ethereum as securities, as a key decision of the court. Brad says this will shed light on the logic of the regulator as it classifies cryptocurrencies.
He believes that the previous head of SEC, Jay Clayton, was an enemy of cryptocurrencies, which affected the development of the industry during his tenure, and therefore in the last days of his leadership, he made a decision to sue Ripple. Garlinhouse also spoke about the existence of a conflict of interest among the SEC. However, SEC representative Simpson Thatcher receives a salary at Ethereum Enterprise Alliance.
If we talk about the new head of the SEC, Gary Gensler, he previously taught a course on cryptocurrencies at the university. He should have a better command of the issue, unlike Jay Clayton, so Garlinghouse is optimistic and believes that the work of the SEC will now become more transparent and understandable.
And Brad also commented on the involvement of the XRP community in the lawsuit. We are talking about recent statements that the SEC does not represent the interests of the real owners of XRP and they intend to become a third party in this process. So Garlinhouse and the entire Ripple company are surprised by such support, they do not mind and note that due to the start of the lawsuit, the XRP capitalization fell by $ 15 billion. People lost money and the SEC is to blame for this, which provoked a wave of XRP delisting.
Probably one of the most important questions in this interview, what could be the perfect conclusion to a lawsuit for Ripple. Garlinghouse believes that ultimately his goal is to get some kind of clarity on how cryptocurrencies should be regulated in the US. Therefore, Great Britain, Japan, Singapore, and other countries were able to adopt their own rules. But the United States cannot decide which cryptocurrency is secure and which is not.
That is why Brad, when he found out about the lawsuit, called it an attack on the entire crypto industry. After all, Barry Silbert, the head of Grayscale crypto fund, also behaved incorrectly. We are talking about removing XRP from their fund and replacing it with Chainlink, and what is the actual difference between these cryptocurrencies, asks Garlinhouse. Why XRP can’t be traded, but Chainlink is? That is why, for him, the best resolution of the court will finally be an understandable system of classification and regulation, if this requires a court, so be it.
Another option for the development of events may be the intervention of the US Congress as the legislative branch. The court can set a precedent, but its decision will only concern XRP, it is much better if clear regulation rules appear in America and developers can use them. This is somewhat similar to the development of the Internet, the United States became leaders because there was confidence in the future, but in cryptocurrencies there is no such confidence now.
According to Garlinhouse XRP is a highly efficient digital asset. There is an active development of its use cases for international payments, in particular through the liquidity system on demand. But Brad also compares XRP to Amazon, which started out as a bookstore but has now become a multi-service corporation. Likewise, XRP will receive more and more new uses over time.
An important question about Ripple’s work with central banks to issue national digital currencies. Garlinghouse cannot make any announcements regarding the affairs of central banks, but he is ready to confirm that representatives of these structures have conducted and are conducting new consultations with Ripple on how digital currencies work and how they can be launched. As soon as there are some more informative announcements, they will report it.
However, he noted that in the creation of the digital dollar, the United States is clearly lagging behind China with its digital yuan.
Brad added that on the topic of digital currencies, Ripple speaks not only with central banks, but also directly with governments around the world, which can be regarded as an affirmative answer to the question whether there were such discussions with the participation of the US Federal Reserve.
And the main question of the entire interview is what will happen to Ripple’s 55 billion XRP. The escrow was created to keep the community free from suspicion of foul play against them. Ripple has created a transparent account, there is an asset data withdrawal system known to everyone and Garlinghouse assures that neither Ripple, nor other people outside the company, probably a hint of Jed McCaleb, never set out to bring down the price of XRP. On the contrary, the company is interested in the growth of the rate. As for the future of the funds in the escrow account, they are considering various options.
And if they come to the conclusion that all these 55 billion XRP coins need to be burned, then in theory this can be done.
As for the future of Ripple in three or five years, Garlinhouse sees a network of on-demand liquidity growing to the level of an international hub, through which billions of dollars will flow every day. Work is also actively underway on other uses of the XRP ledger. Perhaps there will be an IPO of Ripple, but until the trial with the SEC is completed, it is difficult to say whether it will be held in the United States, so first you need to solve one problem and then move on to the next step.
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