Members of Ripple’s senior management team reveal a series of crypto predictions for the coming year.
In a new blog post, executives offer their forecast of what to expect next for crypto regulation, decentralized funding (DeFi), central bank digital currencies (CBDCs), and the issue of scalability and sustainability in space.
Ripple General Counsel Stu Alderoty believes that crypto growth in the US depends on friendly crypto regulation as the sector continues to mature.
Alderoty predicts that President Joe Biden’s administration will prioritize crypto regulation in the hopes that “smart, well-designed regulations” can help “fuel innovation and further adoption of cryptocurrencies in the US.”
Alderoty does not directly address claims by the U.S. Security and Exchange Commission that Ripple illegally sold XRP as an unregistered security, although he recently said the company would issue a formal response soon.
Regarding the fate of CBDCs, James Wallis, Vice President of Central Bank Engagements at Ripple, anticipates the trend towards pegging digital currencies to fiat currencies will continue to develop.
“Over the course of 2021, I expect more development in cryptocurrencies, stablecoins and CBDCs, with each company defining its place in finance and payments through more precise use cases.”
In the DeFi space, Ripple’s DeFi director Michael Zochowski expects the “really useful” projects to expand their user base as early projects are consolidated, acquired, or closed. Zochowski also predicts that Ethereum’s market share in the DeFi space will decline this year.
“I believe that at least 25% of the value provided in DeFi by the end of 2021 will flow into networks other than Ethereum.”
Asheesh Birla, general manager of Ripple’s institutional payment network, RippleNet, predicts the status quo of traditional financial institutions will continue to face growing threats from financial technology and cryptocurrency companies.
“The tide is turning. It is possible that a fintech or cryptocurrency company could even acquire a traditional financial institution in the coming year.”
In terms of scalability and sustainability, Ripple’s Chief Technology Officer David Schwartz plans to move away from proof-of-work technologies.
“The fact is that PoW systems consume a lot of resources and energy. They also show an inevitable tendency towards centralization over time as the cheapest energy miners become major stakeholders. In 2021, technical innovations will further improve blockchains … “
Monica Long, general manager of the Ripple developer platform RippleX, expects 2021 to be the year in which the original goal of crypto will be realized.
“In 2021, Crypto will deliver on its original promise to reshape funding to be more accessible and equitable for the world’s underserved people.”
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