Brad Garlinghouse, Ripple CEO, believes most governments consider blockchain technology a game-changer as it solves frictions like transparency and settlement.
Crypto skyrocketing as the dollar diminishes
As a response to a Bloomberg report, he tweeted that many viewed crypto as a scam in 2019, but now the odds have changed as it is up by 80%, whereas the dollar has declined by 3%.
The US dollar has been at the helm as the global reserve currency. Garlinghouse trusts that this position will not change in favor of crypto or gold, as it is the backbone of the global financial infrastructure. Nevertheless, he points out that it has been shaky and weak, especially during the present economic turmoil instigated by the coronavirus (COVID-19) pandemic.
On the contrary, the crypto market is on an upward trajectory given that Bitcoin, the leading cryptocurrency, slumped to $3,800 on Black Thursday in March, but it’s now hovering around the $11,000 price.
Different nations are continuing to be active participants in the crypto space. For instance, Iran recently gave power plants the go-ahead to mine Bitcoin because of cheap electricity.
Diversification is key
Garlinghouse acknowledged that worldwide populations are losing confidence in fiat currencies, as evidenced by the dollar drop. Therefore, this gives blockchain an upper hand as it boils down to trust in the financial system.
He noted, “It comes down to trust in the financial system at the end of the day. As global populations continue to lose confidence in fiat currencies (as we’re seeing with USD), they will choose to diversify. Our future global financial system will do the same.”
Blockchain triggers transparency based on the decentralization of systems, and this is an issue Garlinghouse highlights as it will prompt diversification based on immutable storage and traceability.
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