In a blog post released yesterday on Ripple’s official website, Ryan Zagone, the Director of Regulatory Relations for Ripple, clarified the company’s stance on regulation. He began by stating that most conversations revolve around the logic that blockchain is good whereas digital assets such as cryptocurrencies are bad. He also said that the attitude was changing and that regulatory parties are ‘taking a close and thoughtful look at this technology’.
He also said:
“…concerns around consumer and investor protection, money laundering, and cyber security – none of which are new – can be effectively addressed with…policy recommendations”
He states that the focal point of regulatory measures must be how to address the market risk associated with digital assets, while at the same time, preserving the potential for new use case scenarios of blockchain and associated technologies. He uses the analogy of a hammer, and how it can be used both as a tool and a weapon, to illustrate how digital assets can be used for both constructive and destructive purposes.
He then goes on to mention Ripple’s position in this emerging market. Ripple is associated with using the blockchain to power financial transactions. The post reflects the facts laid down by Ripple in their hearing at the U.K. Parliament yesterday. He spoke about the high cost associated with cross-border payments for financial institutions and individuals alike.
He cited the high fees for foreign exchange as being a barrier for working families to fully receive the low-volume, high-frequency payments associated with retail employment.
Financial institutions face high costs for cross-border payments due to the necessity to maintain Nostro accounts overseas, which leads to billions of dollars sitting dormant. Using Ripple’s solutions and XRP as a bridge currency reduces the cost associated with maintaining said accounts and reportedly generates a cost-savings of up to 60%.
He called for an even-handed and balanced regulation to come into place to allow for the flourishing and growth of new technologies. He stated that:
“This approach can enable the next era of global commerce and financial inclusion, while ensuring market safety and consumer protection.”
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