According to Garlinghouse, it’s a matter of time before the cryptocurrency phenomenon becomes globally accepted because many people have lost confidence in fiat already.
The CEO of Ripple Brad Garlinghouse has said that governments are now looking up to the cryptocurrency space as a solution to frictions and transparency issues associated with payments. The Ripple chief made the comment in a tweet while responding to the Bloomberg report.
Thread on this USD as the world’s reserve currency has been the backbone of global financial infra, and that position isn’t going to disappear in favor of gold/the yuan/crypto/any other asset any time soon. But is it weaker today? Yes. (1/3) https://t.co/Td04uJOEXs
— Brad Garlinghouse (@bgarlinghouse) August 3, 2020
Garlinghouse said that cryptocurrencies which many viewed as a scam in 2019 has proven critics wrong as the coin market has been in the green in the past couple of weeks. This is happening as the value of the USD has reduced by 3%.
USD Is Still Global Reserve Currency
Garlinghouse said that even though the coin market is up by 80% since the March low of $3800, that there’s no likelihood that digital currencies would replace the USD as global reserve currency. He added that neither would gold take the position of the USD.
In an earlier tweet, Bloomberg has written guide to the pros and cons of replacing the USD with digital currency, gold or other potential financial instruments.
The U.S. dollar has been the world’s reserve currency, even though the present COVID-19 pandemic has hit hard on the global economy, effectively weakening the currency. However, Bitcoin and other digital assets seem to have weathered the crisis. The leading asset is presently trading at $11,800 and hasn’t shown signs of weakening.
Ripple CEO Notes International Interest in Cryptocurrency
Several countries have taken note of cryptocurrencies with some working on national digital currency projects even though there have been skepticism initially when the industry was at its infancy. Japan for instance is researching the prospect of a central bank digital currency (CBDC).
Interest in the asset is such that Iran has approved that power plants use excess electricity to mine Bitcoins.
According to Garlinghouse, it’s a matter of time before the cryptocurrency phenomenon becomes globally accepted because most people have lost confidence in fiat. This could give blockchain the advantage of moving center stage in the future.
“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,” noted Garlinghouse.
As part of the ecosystem, it is natural that Ripple CEO supports the advancement of the cryptocurrency industry. This is common among pundits who routinely highlight the positives of the industry for its progress.
Chuks is a blockchain enthusiast and finance researcher that has covered the crypto sphere for several years. He believes that the evolving technology would change how we do business.