Brad Garlinghouse, CEO of Ripple, has urged US regulators to “step up to digital currencies” so as not to lag behind China in this area.In a tweet released on May 26, Garlinghouse warns that “complacency is repressed,” and quotes an article that suggests that China’s long-touted long-term digital central bank currency (CBDC) has the potential to make the dollar a global reserve currency.
SWIFT is surpassed by blockchain technology
The United States’ financial dominance currently rests on both the dollar’s status as a global reserve currency and its control over the Society for Worldwide International Financial Transactions or SWIFT system.This facilitates messages between global commercial banks regarding payment orders and acts as an intermediary for the majority of cross-border payments. Controlling this system gives the United States a significant impact on the ability to impose financial sanctions.
USA is lagging behind
Although China claims to have no planned launch date for its digital yuan, the CBDC is currently piloted in a number of regions.The U.S. is years behind China in terms of a national digital currency, but Garlinghouse believes that a more welcoming legal framework for public digital assets like XRP can help make up for lost time.And while a Chinese CBDC would be completely outside of US control, Garlinghouse quickly emphasized that XRP is not exempt from US (or even global) financial supervision.