Ripple Speaks About Cryptocurrency Regulations and Ethereum’s DeFi Dominance.
Ripplenet General Manager Asheesh Birla, 2021 fintech firms will emerge as a serious competitor to traditional banking institutions to think . In fact, he makes an ambitious guess, saying that a cryptocurrency company may soon buy an old financial institution. Birla said in a U.Today report:
“Times are changing. This year, we might even see a fintech or cryptocurrency company buy a traditional financial institution. “
Regulations Will Provide Clarity
According to Birla, this will happen with the regulations to be made in the sector. Stu Alderoty, Ripple’s General Counsel, says regulating cryptocurrencies will be a key issue for Biden management:
“Smart, well thought-out regulations that allow to communicate effectively and are implemented in a uniform manner can help balance the field and unleash innovation and help adopt more mainstream here in the US.”
Ripple, which has said for years that cryptocurrencies need to be regulated, was sued by the Securities and Exchange Commission (SEC) in December.
1 Ethereum’s DeFi Dominance
In addition to assume the traditional financing, Ripple’s got more ambitious goal: Ethereum ‘s merkezyetsiz to reduce the dominance of the financial sector.
Ripple’s DeFi Chairman Michael Zochowski predicts that the second-largest blockchain will lose at least a quarter of its value distributed across different protocols to other blockchains:
“I believe at least 25% of the value distributed on DeFi by the end of 2021 will be in networks other than Ethereum.”
With Flare’s addition of smart contracts to XRPL, tokenization, and decentralized exchanges, XRP could have an important place in the DeFi space.