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On this episode of The Ripple Drop, we speak with Ripple Co-Founder Chris Larsen about the need for clear regulations around blockchain and digital assets—technologies that power the Internet of Value (IoV). We also hear from Michelle Bond, Ripple’s Global Head of Government Relations, about current global policies for these emerging technologies and regions that offer clear frameworks for others to model.
Building the Internet of Value
Our vision at Ripple is for value to be exchanged as quickly as information is today—a concept known as IoV. We’re helping enable this vision by using blockchain technology and digital assets to provide fast and cost-efficient global payments to everyone, everywhere.
“Blockchain is an infrastructure for moving value around the world. And that’s both the distributed ledgers as well as the interoperability layer, ILP,” says Larsen.
He goes on to explain that digital assets are important for reducing liquidity costs and “greasing the wheels of transactions” between fiat currencies, such as the dollar, yen, and euro. These currencies need a digital asset to enable an easier and faster way to exchange global payments from one fiat to another.
In this manner, blockchain and digital assets supplement the global economy in significant ways. To fully realize the benefits of these technologies though, Larsen underscores the importance of clarifying requirements around consumer protection and encouraging innovation.
Establishing Clear Policy
As the industry matures, the need grows for clearer regulation of blockchain and digital assets. Bond discusses current global regulatory frameworks and the substantial benefits that these frameworks offer the financial industry and the governments that adopt them.
“From a business standpoint, regulatory clarity is important. If a business is going to set up shop in a certain jurisdiction, companies want to know that they will have certainty in what the rules are that they will have to abide by” says Bond.
Bond further explains that regions, including the U.K. have already put in place digital asset market frameworks that both support innovation and address consumer risk. Frameworks like these can serve as a model for countries looking to provide regulatory clarity. They can help attract innovation and new technological advances that lead to new jobs and tax revenues.
The Ripple Drop is a web video series covering the latest news about Ripple’s customers, technology, products and culture. You can catch up on previous episodes here and subscribe to Ripple’s YouTube Channel, where we feature extended cuts. Let us know in the comments if there are any topics you would like us to cover in the future.
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