Brad Garlinghouse, CEO of Ripple Inc, the startup responsible for the development of XRP, recently spoke about his optimistic view regarding the adoption of cryptocurrencies by traditional players within the current financial system.
Garlinghouse thinks it is very likely that during 2019, traditional banks will start offering financial services based on cryptocurrencies. This prediction is somewhat difficult to believe due to the nature of banking; however Mr. Garlinghouse elaborated on the reasons behind his optimism.
Speaking at the Singapore FinTech Festival 2018, the head of Ripple Inc, said:
“I think one of the things that will surprise us a year from now is that banks will be custodying digital assets directly.
And I think right now, we think about that and think there’s no way that’s going to happen – they’re too conservative. And I think what you’re seeing is two things happening. One is, banks are seeing that a lot of money is being made by digital asset exchanges globally, and banks are profit motivated.
The second, and as we’ve talked about and Ross made very clear, is regulatory clarity and regulatory frameworks allow banks and financial institutions to lean into these markets.
For Mr. Garlinghouse, the need for a clear regulatory framework is critical when it comes to ecosystem growth. Ripple has been a key player in promoting legal progress for a crypto-friendly world, with initiatives ranging from awareness raising to legal pressures via lobbies.
Mike Novogratz shares Garlinghouse’s opinion. For the CEO of Galaxy Digital, the next big bitcoin bull run will happen once there is legal clarity that allows institutions to feel comfortable investing in cryptocurrencies.
In the same vein, the man behind Ripple’s success commented that according to his analysis, it is quite possible that Asian banks will be the first to take that first step:
“I also predict it will be banks in the ASEAN markets, where there is this regulatory clarity, and there is a lot of progressive, forward thinking. They will be the first to actually allow for crypto assets custody in their accounts.”
Asia has become an important focus of attention for Ripple. Many of its recent business decisions have been focused on expanding into Asian markets. Recently Ripple entered the Chinese market thanks to a partnership with LianLian and American Express