Breaking News

Biggest Problem for Ripple is Regulation says its VP
Editorial Team

According to a publication, Asheesh Birla, the senior vice president of product at Ripple, revealed that the biggest risk that the company faces at the time is regulation.

Consequently, the company has hired a large regulatory team with the responsibility of ensuring that next investments would not be hindered by regulatory bottlenecks.

“We are going around the world making sure that for the next 1,000 customers that we want to bring on… which we think we can do in the next two years … that regulation is not going to be an issue,” said Birla during a panel session dubbed ‘Scaling and Digital Disruption in Fintech’ that was organized by the University of Pennsylvania’s Wharton Scale School.

One of the major regulatory uncertainties that Ripple is dealing with this period is its classification as a security or not. While the US Securities and Exchange Commission has clarified that Ethereum and Bitcoin are not securities, the same treatment has not been accorded XRP. As reported in the site Ripple Labs CEO Brad Garlinghouse last month, the company has insisted that it is not a security.

“I think it’s really clear that XRP is not a security. XRP exists independent of Ripple and it would operate even if Ripple Labs failed. I don’t think that our ownership of XRP gives us control. Saudi Arabia owns a lot of oil that doesn’t give them control of oil,” Garlinghouse was quoted as saying late last month.

Moreover, during the “Scaling and Digital Disruption in Fintech” panel session, Birla highlighted the reason that most countries worldwide were taking a conservative approach regarding cryptos was that the sector is relatively new.

And while he recognized that cryptocurrencies held a transformative potential on the world, Birla termed what Ripple was doing as more of ‘reshuffling the world order a little bit’ rather than disrupting banks. According to him, Ripple’s technology will assist smaller financial institutions to better compete with the bigger ones.

In the same Wharton Scale School event, Birla also revealed that the difficulty in attracting and retaining talent is due to the fact that FinTech companies do not offer such a competitive compensation package as the Silicon Valley tech firms.

Nevertheless, the situation has better off in comparison with it of five years ago when Blockchain and crypto had not gained as much attention as now. As a result, the caliber of talent that Ripple is now able to hire is better than was previously the case. Ripple is also in a better position of poaching from established Silicon Valley tech giants.