In an interview with The New York Times, Monica Long, President of Ripple, stresses the need to accelerate global commerce, citing the slow pace of traditional financial systems. Long argues that cryptocurrencies like XRP are critical to addressing this delay and propelling the world toward a more connected and rapid future.
Long explains that conventional financial structures, often called TradFi, are struggling to match the current speed of worldwide business growth. Cryptocurrencies, especially Bitcoin and XRP, are gaining traction in developing nations due to macroeconomic instability and weak inflation control.
Organizations like the International Monetary Fund and the Financial Stability Board have acknowledged the “cryptoization” of these emerging economies, where people are turning to cryptocurrencies as a preferred alternative to local currencies.
Highlighting the desire for stability, Long notes the expanding use of stablecoins pegged to the U.S. dollar in countries like Argentina, Zimbabwe, and Nigeria. These stablecoins offer a more reliable store of value and medium of exchange given the volatility of local currencies.
In line with this, Ripple Labs under Long’s direction has published a white paper on central bank digital currencies (CBDCs). The paper outlines how CBDCs could improve transparency and market efficiency for sovereign currencies, potentially circulating $5 trillion globally over the next decade.
As regulatory uncertainty continues, Ripple’s CBDC focus mirrors its commitment to establish clear standards and regulations in the crypto arena. Meanwhile, the U.S. Federal Reserve also studies the concept of a CBDC to improve payment options, liquidity, and cross-border transactions.
