China’s blockchain push an eye-opener for US, Ripple

Ripple’s co-founder and executive chairman Chris Larsen called China’s blockchain push a wake up all for the US and said it is time for the Trump administration to pull their socks up if they want to stay ahead of the curve.

San Francisco Blockchain Week was full of vim and vigour and as industry’s coveted companies, sought-after entrepreneurs, academics and developers all gathered under one roof to discuss the future and challenges pertaining to the in-vogue technology, blockchain. And when Ripple’s co-founder, Chris Larsen and XRP founder, Michael Arrington, took centre stage, things only got livelier.

China has sent cryptocurrency market into a state of frenzy ever since President Xi Jinping entrusted blockchain technology with leading technological advancements for the world’s most populous country. If the world’s biggest economies are feeling the need to turn to blockchain for better governance, then the advent is imminent – is the opinion of other governments who are in the race. One of them is the US, according to Larsen.

Effects on China’s blockchain push on the US

Larsen began the interview by commending China’s efforts in spearheading technological breakthroughs. However, he also mentioned that China’s blockchain push puts immense pressure on the US government inadvertently. If a country like China, which has been as nonconformist as possible, has believed in blockchain’s potential to overturn its economy, then it is about time the US regulators step up their efforts and create clear guidelines, Larsen advocated.

According to him, China renewed stance towards blockchain has shown how vital it is to the financial system and calls for more significant action from countries like the US for supporting the emerging financial technology solutions and digital assets

President Xi Jinping has put blockchain right up on top, along with already-established and time-tested technologies like artificial intelligence and quantum. And while the US has done a remarkable job in embracing and advocating a groundbreaking technology like the internet, its efforts to accept blockchain are falling short, Larsen pointed out.

US regulators must step their game, Ripple

However, in all fairness, the finance has just gotten way more complicated than it was in ‘97; he was quick to jump to his country’s defence. We are not dealing with only the data here, and that’s what’s causing the US regulators longer to act, given the complexities involved in dealing with banks and financial institutions.

He also acknowledged the government’s much deliberation over the impact on the overall monetary system. Yes, the implications are severe, Larsen admits. However, he adds, it is also a time to contemplate whether the existing framework is sufficient to keep the companies from moving their bases abroad. If not, then we are in danger of lagging, he concludes.

Meanwhile, Ripple is doing its part in providing the much-needed awareness surrounding the technology. Last month, it announced the opening of its new office in Washington DC in its attempt to educate policymakers and push for regulations that support blockchain growth.