Ripple has been working on various projects despite its legal brawl with the SEC. In a recent interview with Brooks Entwistle, the senior vice president of customer success and managing director of APAC and MENA at Ripple said that Ripple is currently in talks with over 20 central banks about the development of a central bank digital currency (CBDC).
While large nations like the US and China have focused on developing a CBDC through the public sector, the small nations with limited resources are choosing to use the services of firms like Ripple to design a CBDC that perfectly aligns with their needs.
Entwistle said:
“No two situations, no two central banks, no two countries are the same. There are 200-plus countries out there. There are a lot of central banks and they have different needs and there are different parts of this journey.”
“So, we are in dialogue with not ten, not twenty, but a bunch more central banks around the world on these discussions. We’ve announced projects with Bhutan, with Palau, and others to come, and I think that just shows you that this really resonates now.”
Entwistle went on to say that managing to partner directly with regulators and governments is “invaluable,” adding that in most parts of the world discussions about blockchain and crypto have been welcomed, as opposed to the United States, where Ripple was sued by the Securities and Exchange Commission (SEC) for the alleged sale of unregistered securities.
Entwistle commented:
“Regulators welcome that interaction here in Singapore, up in Tokyo, in Switzerland, in the U.K. – we’re part of that dialog. You are on panels, you’re in rooms with the regulators talking about what we’re seeing, what we’re learning, and it’s a two-way process.”
“It’s really on us, as an industry, to prove utility and why crypto matters, why blockchain matters, and what it can do for countries, for citizens, for businesses, for big world problems. If we can prove that case and make that case in a strong way, then regulators will follow and come along.”
The United States risks falling more behind in the CBDC race because of its oppositional stand to the crypto space, he insisted, which will just serve to push projects and firms to more cordial jurisdictions.
The decision in the Ripple versus SEC case might become a landmark ruling that might not just have an impact on Ripple and XRP users, but on the crypto sector in general
Entwistle added:
“It’s about the entire industry and it’s about innovation in the United States. We have done all we can on our side. We’ve made our best case. It is now with the judge, and we would hope and expect that in the first half of 2023 there would be some resolution.”
For now, the firm is mainly focused on developing and innovating, and they will deal with the outcome of the SEC case when it is determined. Entwistle said that it was the best way forward, mostly in an environment where capital is drying up and firms are struggling to remain afloat.
He highlighted:
“You’ve only got the ability to go after a couple of things that really matter. This is not a time to chase bright, shiny things all over the world in the hope that some of them play out. What firms need to be asking themselves at this time is, where can you add value and make a difference?”
Ripple is now focused on helping emerging nations with their CBDC development aiming to help reduce the number of unbanked people globally. In Southeast Asia, more than 290 million people do not have banking services, a number that is larger than the population of the United States.
“We think about the opportunity for us not in small subregions, but as a global opportunity.”
Not just individuals will benefit. Also, small businesses in the underbanked areas will reap the rewards of being in a position to readily move some capital between offices or across the borders and having a clientele that can pay through the official channels.
So there’s a lot of room to run, but we have to continue to be mission-driven on that front, because when you are, it keeps you honest with policymakers.”
Buy Bitcoin NowWhen asked about competition in the cross-border payments space, Entwistle highlighted that the cross-border flow of values is one of the “the last great unsolved financial problems or puzzles in the world,” and solving it needs a global network.
The Ripple executive insisted above all that crypto will not go away, so it makes some sense for authorities and governments globally to work with the sector to create clear rules and regulations and determine the ideal method of integrating CBDCs into the global economy.
Entwistle concluded:
“There is no question that digital currencies are going to be a part of the landscape going forward. Every country has to have an answer for their own constituents as to what it will do and how it will impact and most importantly, we think, in the positive case, how it can really drive economic growth and financial inclusion.”
