In its quest to push for mainstream adoption of cryptocurrency, Ripple has been at the fore educating regulatory bodies on the need to give cryptocurrency a prudential treatment.
The international Monetary Fund chaired by Christene Largade keeps on advising government, institutions and big banks across the universe to see digital currency as the next form of money especially with the way it is shaking the traditional system.
Largade on several occasions put Ripple Inc. forward in disseminating the glad-tidings of cryptocurrency.
The reason IMF is putting Ripple Inc at the fore is that Ripple is willing to follow regulatory procedures that will make governments adopt cryptocurrency since some of these governments largely believe digital assets are designed for drug pushers, money launderers, tax evaders, and some other criminals.
Ripple’s CEO Conversation with World’s Financial Experts on Cryptocurrency
Last week, Ripple’s Brad Garlinghouse engaged world’s financial experts and leaders of Central banks across the globe on the importance of cryptocurrency. Garlinghouse did justice to the realm, bringing different use cases of cryptocurrency, and why it stands out.
At the Swiss National Bank Conference with the presence of financial institutions and central banks, CBDC and their benefit on the economy were discussed. Ripple’s CEO was the only attendee from the private sector.
Brad talked about xCurrent, xRapid and RippleNet. He delved into the importance of blockchain and Ripple’s decision to solve the cross-border remittance problems that the likes of SWIFT cannot solve.
Ripple’s xCurrent is Swift 2.0
At the conference, Brad said said xCurrent is Swift 2.0 considering its fast and seamless nature when compared with SWIFT. The CEO also talked about cryptocurrency, comparing XRP with Bitcoin.
Seen at the conference were, Governor of the Central Bank of Russia, Elvira Nabiúllina, Chairman of Hong Kong Monetary Authority, Norman Chan, SAMA Governor, Ahmed Abdulkarim, BIS Chairman, Agustin Carstens, IMF Director, Tobias Adrian, and Christine Largade etc.
Ripple (XRP) Attends International Conference on Fintech in Austria, Says Bassel Committee is Reviewing into Prudential Cryptocurrency Regulation
Also, Ripple attended a two-day International Conference on Fintech organized by the World Bank at the Vienna Financial Sector Advisory Center (FinSAC).
At the conference where central bankers, supervisors, and regulators were present, attendees discussed regulatory and supervisory responses to fintech. They also discussed operational risk arising from fintech like the new Distributed Ledger Technology.
Dan Morgan, head of regulatory relations for Ripple in Europe, who attended the conference spoke on the need for the adoption of cryptocurrency.
Morgan was encouraged to hear The Basel Committee’s review into the prudential treatment of digital assets.
Morgan said the decision is important for the wider adoption of digital assets across financial institutions.
Bassel Committee and Cryptocurrency Adoption
In March 2019, The Basel Committee raised some observations on cryptocurrency especially its volatility.
The committee claimed cryptocurrencies present a high number of risks to banks, citing fraud and cyber risks as example. The Basel Committee in that regard, cautioned banks from delving into the space without doing due diligence.
As at then, The Basel Committee said banks willing to go into crypto dealings should inform necessary authorities, encouraging them to clarifying how it has mitigated against the risks associated with such exposure.
Basel Committee said: “The Committee continues to monitor developments in crypto-assets, including banks’ direct and indirect exposures to such assets.”
“The Committee will in due course clarify the prudential treatment of such exposures to appropriately reflect the high degree of risk of crypto-assets. It is coordinating its work with other global standard setting bodies and the Financial Stability Board.”