Ripple, which has been sued by the US Securities and Exchange Commission (SEC), has published a review for 2020 and 2021. While the company did not give details about the litigation process, it made important comments on many issues from the point where the cryptocurrency industry has come to the course of DeFi and the banking industry. The article, which stated that the progress of financial technology companies will accelerate, said "You can see that a crypto money fintech company bought a traditional finance company in 2021".
While Ripple, which is in trouble with the SEC, also evaluates the regulation, it was stated that the G-20 countries, especially the USA, which will continue with a new administration, should follow a more clear and uncertain policy in the regulation moves on new technologies.
Important parts of Ripple's review on 2020 and 2021 are as follows:
“2020 was definitely not a year where expectations were met. The expectations for mainstream blockchain and cryptocurrency adoption did not actually happen. However, the pandemic once again showed us the importance of cryptocurrencies and technology. Regulations, on the other hand, are not only Ripple, but the entire cryptocurrency industry has been talking.
Rapid crypto progress
RippleNet Managing Director Asheesh Birla states that the relationship between cryptocurrency and the banking industry is now blurred. Financial technology, that is, fintech companies, started to take some of the market shares of traditional banks that could no longer keep up with the pace of life. According to Birla, more fintech companies will start recanting on equal terms with banks in 2021. "Devran is returning," says Birla: "We can see a fintech company buying a traditional financial institution"
The birth of DeFi
Last year, it was an opening party for DeFi. It has become one of the most talked about industries of 2020. "I think DeFi projects will attract more attention in 2021 and some will even be bought in the coming months," said Michael Zochowski, President of Ripple's DeFi. Zochowski also stated that projects that have real usage areas and simple applications will continue on their way, and 'wrapped' products and decentralized exchanges will progress by gaining speed.
Stating that Eth2 is still far from reality, Zochowski stated that Ethereum will continue to lose space and said, "By the end of 2021, I believe that at least 25 percent of the value in DeFi will be in networks other than Ethereum."
Clarity in regulation
The administration new to the White House is expected to re-address the issue of regulations. As cryptocurrencies and the industry progress towards becoming mainstream, G-20 countries, especially the USA, have to put this issue at the forefront of their agendas. Especially in the last 4 years, the uncertainty on this issue has left fintech and blockchain companies in a vacuum. Compared to the USA, we see that Britain, Japan, Singapore and Switzerland are way ahead.
Ripple General Counsel Stu Alderoty states that cryptocurrency regulations will be a priority for Biden management. This can speed up the process for fintechs trying to get a crypto license.
Year of CBDCs
It has also created a living space for CBDCs (central bank digital currency) between state regulations and technological development.
China's progress on this issue, the pandemic and the fact that governments are looking for easy ways to distribute their support packages have accelerated the work on CBDCs. While FED is working with MIT on this issue, European countries are also continuing their feasibility studies.
"These developments in CBDCs are the clearest indication of how much digital currencies will be used in the future," said James Wallis, vice president of the Department for Dealing with Central Banks at Ripple.
CBDCs are expected to play a major role in overcoming local problems next year.
Beyond Proof of Work…
According to Ripple CTO David Schwartz; Ethereum's Beacon Chain was one of the important steps in 2020. “PoW systems consumed a lot of resources and energy,” says Schwartz. In addition, it was a feature that the miner with the cheapest power supply obtained shares and went to the central system in an unavoidable way. "2021 will be a year in which technical innovations increase and blockchains such as XRPL using newer technologies continue to evolve," he said.
The fact that XRP is far ahead in terms of carbon emissions compared to Bitcoin, credit cards and even cash shows the potential of the industry.
Focusing on the crypto effect
RippleX Managing Director Monica Long says that next year finance will be an accessible sector to everyone. Stating that crypto will first open the door to fintech companies and thus more consumers and customers will enter the sector, Long said, “Companies providing services that are easy to use and understand; they will be in a safe, secure and private position ”said:
"The biggest change is the digital path in the Middle East, North Africa and Central Africa.
