With regard to the inauguration of Joe Biden, the management of Ripple published in the company’s blog an assessment of the cryptomarket and forecasts for the year.
Despite the threat of a ruinous SEC lawsuit against Ripple, the company’s management is optimistic about both its own cryptocurrency XRP and the market in general. Chief attorney Stu Alderoty notes that the Ripple case shows how much the crypto market depends on regulation: “Intelligent, well thought-out regulations can help unleash innovation and further mainstream adoption. The lawyer hopes that the Biden administration will demonstrate friendly attention to the regulation of cryptocurrencies. Regarding the SEC’s lawsuit, the company’s official response will soon be published. Ripple does not acknowledge the accusation that it sold XRP tokens as an unregistered security.
The lawsuit suspended Ripple’s partnerships with central banks to issue central bank digital currencies (CBDCs). In this regard, James Wallis, vice president of central bank relations, stated that CBDCs will continue to emerge as a way to peg cryptocurrencies to fiat currencies. Meanwhile, the expert did not determine the place of Ripple in this process, he only stated:
– I expect to see greater evolution of cryptocurrencies, stablecoins, and CBDCs.
Ripple’s executives have also underlined the progress in decentralized finance. Michael Zochowski, the head of DeFi at Ripple, believes that not all projects will survive. But really useful projects will increase their user base. It is notable that the expert predicts a decrease in the share of the Ethereum platform in DeFi to 75%. Currently, the vast majority of these projects are launched on the Ethereum blockchain. Last year’s hype became the basis for the emergence of new platforms on which DeFi services can be launched.
Asheesh Birla, general manager of RippleNet, which provides payments to institutions, suggests that in 2021, traditional financial providers will continue to lose out to cryptocurrency companies and fintech services. It is possible that fiat structures will be absorbed by cryptocurrency firms:
– We could even see a fintech or cryptocurrency company acquire a traditional financial institution this coming year.
Ripple’s management also believes that in 2021, cryptocurrencies will become more accessible and will be able to provide cheap financial services even to those who do not have access to banking services.