The big announcement on whether cryptos such as Ripple (XRP) will be declared as securities or not hasn’t been finalized. As of now, we can expect the big news to be announced in next couple of weeks, though. Although, the legal foundation of the world’s financial system is working tirelessly to make things better; Ripple, on the other hand, is partnering with them and other financial regulators out there.
The main problem right now is not declaring Ripple as a security, but if Ripple’s technology can be legally used for securities, commodities, stocks, bonds, and dividends – and whether Ripple’s technology can revolutionize the world’s transactions.
The world has $294 trillion financial assets, and part of it is the global market capitalization which has risen from $34 trillion to $69 trillion – this entails the amount of money that moves on a daily basis, and of course, we can now process these transactions with Ripple’s technology.
IMF is ‘bullish’ on cryptocurrencies
The IMF (International Monetary Fund) has recently expressed its support for cryptocurrencies such as Bitcoin and Ripple. IMF’s CEO, Christine Lagarde, stated that cryptos do not impose significant threats to the present-day fiat currencies.
Largarde sees cryptocurrency to be, “volatile, risky, energy incentive and because the underlying technologies are not yet scalable enough.” Christine believes that the defects of cryptocurrency can be corrected effectively.
She further laid more emphasis on the future preference for digital currencies by saying:
“Why would citizens hold onto virtual currencies rather than those physical dollars, physical euros or physical sterling’s. Because it may one day be easier and safer than obtaining paper bills, especially in remote regions and because virtual currencies could actually become more stable.”