The increasing prominence of Ripple in crypto-cautious America has given them a unique position of power and influence, in part due to risks of Chinese dominated mining pools for other cryptos.
Such influence can be used to advance US regulation on cryptocurrency markets and provide clarity where there is none, a fact not gone unnoticed by Ripple as they lead a coalition with plans to lobby the government for a softer stance on crypto.
It is possible that this will link with backing from the very top of government. Cory Johnson, Ripple’s market strategist, had this to say in an interview with Breaker magazine:
“The White House, in particular, seems to be thinking about what it means to have 80 percent of bitcoin mining taking place in China and a majority of Ether mining taking place in China. When you look at XRP, there is no mining, so from a foreign-control aspect, XRP is a very different beast.”
Here lies an advantage for Ripple which may be instrumental in fostering widespread adoption in the US market: 60% of XRP supply is owned by Ripple Labs, and the absence of mining means sovereignty over the other 40% will not be easily surrendered to foreign collectives.
It could be that the two superpowers go along separate paths concerning the widespread adoption of cryptocurrencies, specifically as a form of payment, and there is some evidence to support this. Despite China’s harsh treatment of the crypto sphere so far businesses are still accepting Bitcoin and Ether in droves without facing punishment.
Ripple, meanwhile, has a chance to move into the American mainstream as for the first time as it is made into a reliable means of payment that can be used every day. Wirex is rolling out its crypto Visa card on the continent, with a payment service that also supports BTC and ETH, as well as Litecoin.
What this means is that XRP can be instantly exchanged for USD through Wirex, before being used with a merchant that normally accepts Visa, both online and in-store. Interest in the United States over Ripple is already at an all-time high; this may be the catalyst for an explosion.
Two competing global giants can help Ripple find solid ground in the US. It is in the interests of the White House to help make XRP more than a competitor to Bitcoin and Ethereum, to eclipse them if at all possible.
The alternative is a scary one: China, for all its regulatory caution, will be keen to capitalize on its iron grip of the two biggest cryptocurrencies. Decentralized in theory, but right now the power lies inside Chinese borders.
Regulation is part of it, although the incentive is there for Congress to be favorable towards Ripple. It may not happen immediately – caution is advisable with such nascent technology, anyway – but it could prove a vital tool in the battle for power between two global superpowers.
Chronic crypto nut and freelance writer/editor for longer than I care to remember. Have finally found a home here at Crypto Disrupt.