Ripple CEO ‘Super Hopeful’ of Biden Administration; Will Hold Off Exiting US, No IPO for Two Years

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Towards the end of November was when XRP finally started seeing some action after nearly three years. The digital asset made its way to $1, while Bitcoin, Ethereum, and DeFi have been enjoying 2020 regularly.

According to Ripple CEO Brad Garlinghouse, the crypto rally has been driven by many governments' macro dynamic worldwide printing more fiat currencies.

In the US alone, with trillions of dollars of stimulus, we're inflating the US dollar; thus, people want to hold non-inflationary assets. They increasingly see crypto as an inflationary hedge, and this is what’s driving this market, said Garlinghouse in an interview with CNN’s Julia Chatterley.

Garlinghouse, who believes that any digital asset's long-term value will be derived from its utility, says while one such utility is a store of value that we see in BTC, the other is solving the payment problem XRP is doing.

With so many cryptos entering the space, bitcoin dominance is getting reduced. Still, according to the Ripple CEO, “bitcoin is going to remain a very important kind of player within the crypto community.” Bitcoin is an entry point from where people expand their portfolio, he added.

95% of Customers are Non-US

One of the reasons Bitcoin has outperformed is “likely that there is clarity and certainty about bitcoin's regulatory framework in the US,” which hasn’t been the case with other cryptos like XRP,” said Garlinghouse. Investors and developers need that clarity to invest in a digital asset or build on top of it.

Because of this, Ripple is a “big advocate” of the Digital Commodity Exchange Act (DCEA) introduced in Congress, which he said is “a very important step” in providing that clarity and that certainty here in the U.S.

“95 percent of our customers are non-US customers, and only about five percent are here in the US,” he said, adding that the companies are waiting for clarity that emanates from the SEC.

IPO Likelihood Two Years from Now

On the topic of moving the company's base to another country due to a lack of regulatory clarity in the US, Garlinghouse said Ripple doesn’t have a strict timeline to make that decision. He is “super hopeful” of the new Biden administration, which will have things like climate change on their radar, bringing XRP to the attention.

Ripple is also not going public any time soon, which Garlinghouse originally predicted to be in 2020, but the pandemic “slowed things down a bit.”

“I think two years from now, the likelihood is Ripple would be in the public markets,” he added.

Cashing it Out

Besides profiting from the jump in the price of XRP, Ripple also sold 4 million shares of MoneyGram. The CEO maintained that they “are still a significant shareholder” in the company and expect to be “for an extended period of time.”

Ripple previously owned about 12 million shares, which was north of 15% of the company on a fully diluted basis. The sales are “simply a recognition that we didn't need to own” this much percentage of the company, he said.

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