Monica Long, President of Ripple, recently discussed the vital infrastructure needed for crypto implementation in a conversation with CNBC’s Arjun Kharpal at Money 20/20. Long emphasized the theme of “Building Infrastructure Fundamentals,” focusing on traditional financial institutions’ growing acceptance and adoption of digital assets. She highlighted the recent Bitcoin ETF approval in the U.S. as a crucial milestone for crypto adoption, noting the significant role played by BlackRock in this development. Many financial institutions are gradually embracing crypto technology as a modern financial framework, according to Long.
Despite the recent approvals of Ethereum (ETH) and Bitcoin (BTC) ETFs, Long stressed the importance of clearer regulations for the crypto industry. She discussed the potential benefits of institutional decentralized finance (DeFi) in basic banking transactions, emphasizing the need for a more open and efficient global financial system. Long pointed to the European Union’s Markets in Crypto-Assets (MiCA) regulation as a positive example of a clear regulatory framework, and cautiously expressed optimism about the evolving relationship between the United States and crypto. Stablecoin legislation was noted as a positive step towards regulatory clarity in the U.S. market.
Long also delved into the debate surrounding private versus public blockchains, noting that while private blockchains are still utilized for technologies like central bank digital currencies (CBDCs), there have been significant advancements in public ledgers as well. For example, Société Générale issued the first euro stablecoin on a public ledger, and Ripple is set to launch a regulated US dollar stablecoin. Long highlighted the potential of public ledgers in revolutionizing financial transactions and promoting transparent and efficient systems.
Discussing the issue of fraud within the crypto industry, Long emphasized the distinction between fraudulent behavior and the technology itself. She explained that scandals like FTX do not represent the industry as a whole, and it is essential to recognize the positive applications of blockchain technology amidst such incidents. Long urged for a separation between fraudulent activities and legitimate advancements in the technology, emphasizing that the industry should not be painted with a broad brush of fraudsters and criminals. Despite setbacks caused by fraudulent behavior, Long emphasized the importance of focusing on the promising potential of blockchain technology in transforming various industries.
In conclusion, Monica Long’s discussion highlighted the need for a strong infrastructure to support the implementation of cryptocurrencies and digital assets in traditional financial institutions. She emphasized the importance of regulatory clarity, advancements in public blockchain technology, and the distinction between fraud and the legitimate use of blockchain technology. As the industry continues to evolve and adapt to changing regulations and market dynamics, Long expressed cautious optimism about the future of crypto adoption and the positive impact of blockchain technology on global financial systems.
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