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Monica Long, Ripple’s president, highlights the sluggishness of traditional financial systems in fostering global commercial growth, contrasting it with the notable success of cryptocurrencies like XRP in bridging this gap.
The New York Times showcased the president of Ripple Labs in a special series on global consumer behavior in 2024, seeking evaluations from a diverse panel of entrepreneurs, business leaders, and academics.
Ripple President Explores XRP’s Global Appeal
Monica Long’s insights underscore a growing trend where traditional financial structures’ perceived sluggishness prompts the developing world to embrace cryptocurrencies like BTC and XRP increasingly.
Reports from the International Monetary Fund and the Financial Stability Board in 2023 emphasized the “cryptoization” of developing economies, with people favoring cryptocurrencies over their local currencies due to macroeconomic instability and weak inflation controls. Long further highlighted the expanding reliance on stablecoins in these regions, providing merchants and consumers shelter from the volatility inherent in some local currencies.
This shift towards crypto and stablecoins for savings and transactions is particularly notable in countries like Argentina, Zimbabwe, and Nigeria. Techopedia’s definition of TradFi as the mainstream financial system, encompassing retail, investment, and commercial banks, adds context to the evolving financial landscape.
In a 2022 think piece titled “‘DeFi and ‘TradFi’ Must Work Together,” the International Monetary Fund emphasized that decentralized and traditional finance can coexist to address critical needs like funding renewable energy, but this requires clear standards and rules.
Marking the third year of litigation with the Securities and Exchange Commission, Ripple Labs is actively seeking clear standards and rules from U.S. courts and regulators in the ongoing XRP lawsuit.
Ripple Labs’ Whitepaper on Central Bank Digital Currencies (CBDCs)
🚨BREAKING: REPORTS CONFIRM BRICS HAVE SHIFTED AWAY FROM THE DOLLAR AND ARE IN DISCUSSIONS WITH RIPPLE TO BUILD A GLOBAL CBDC ON THE #XRP LEDGER. pic.twitter.com/Eax7NOGYs8
— CryptoGeek (@CryptoGeekNews) December 17, 2023
Ripple Labs’ recent whitepaper on central bank digital currencies (CBDCs) coincides with Monica Long’s interview for the Times. The whitepaper highlights the potential of CBDCs to enhance public transparency and market efficiency for sovereign currencies, projecting a global circulation of approximately $5 trillion worth of CBDCs in the next decade.
As the U.S. Federal Reserve Bank explores the possibility of launching its CBDC, the focus is on expanding safe payment options without diminishing existing choices. The Fed aims to study how a CBDC could contribute to safe liquidity, introduce new products and services, facilitate faster and more cost-effective cross-border payments, and further enhance the financial landscape.
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