What will be the currency of the future? As transactions become quick, borderless, and secure, digital or cryptocurrencies enabled by decentralized blockchain technology are becoming increasingly dominant. The future’s primary currency will likely be the one that offers the greatest utility. Fintech Review interviewed Kirit Bhatia from Ripple to gain insights on this topic.
Insight into Ripple
Ripple is a leading provider of crypto solutions for businesses. Its aim is to help organisations of all sizes leverage the power of crypto for greater impact. Through blockchain technology, Ripple enables global financial institutions, businesses, governments, and developers to move, manage, and tokenise value, ultimately unlocking greater economic opportunities worldwide.
Kirit Bhatia joined the fintech industry after observing the limitations in traditional finance systems during his 11 years in Asia. The introduction of blockchain and crypto technology to address these challenges was a clear solution.
Ripple’s mission revolves around creating solutions that foster a more equitable, sustainable, and inclusive global economy. The company has built a network of like-minded organisations to enable seamless value movement globally.
Understanding CBDCs
A Central Bank Digital Currency (CBDC) is the sovereign equivalent of private cryptocurrencies and digital assets. It represents a country’s official fiat currency in digital form, backed by the central bank’s authority and facilitated on the blockchain. While each central bank has unique motivations for pursuing a digital currency, the ultimate goal is to address specific market challenges and opportunities.
Impact of CBDCs on Financial Services
CBDCs have the potential to significantly enhance the existing payments infrastructure, promote financial inclusion, and drive innovation in the financial world. Several countries, including G20 members and smaller nations like Montenegro, the Republic of Palau, and Bhutan, are exploring the integration of CBDCs and government-issued stablecoins to drive innovation and digitalisation within their economies.
Exciting Fintech Innovations
Fintech innovation hinges on the development of clear, simple, and cohesive regulatory guidelines globally, enabling crypto businesses and entrepreneurs to operate with confidence. Regulatory clarity, such as Europe’s Markets in Crypto Assets (MiCA) regulation, and similar initiatives in the UK, Dubai, and Singapore, will pave the way for the next wave of global financial innovation.
Future Plans and Product Roadmap
Ripple’s focus is on growing sustainably and building trust with customers and partners. In the upcoming year, Ripple plans to expand its presence in new markets, acquire new customers, and strengthen its global footprint. The recent launch of their Liquidity Hub product aims to provide businesses with a seamless way to manage their crypto liquidity needs.
Building trust and transparency will remain crucial in an industry affected by turbulence. Ripple will continue its advocacy for clear, universal, and appropriate regulatory frameworks to unlock global crypto utility.
