United Kingdom riddled with crypto scams
Owing to the lack of regulation and restriction in the United Kingdom, fraudulent companies have been flocking to the country.
The CEO Ripple Brad Garlinghouse issued a warning tweet to United States regulators to “step up” or risk falling behind China in the financial sector.
In a tweet, Garlinghouse urged US regulators to consider adopting a central bank digital currency (CBDC) to the economy:
U.S. regulators: now is the time to step up and lean into digital currencies. Remaining complacent is actually setting us back, while China’s grip on both crypto and fiat payments becomes stronger. https://t.co/NuGmFZmf7x (1/2)
— Brad Garlinghouse (@bgarlinghouse) May 26, 2020
He continued in the thread to say:
“One caveat – public digital assets like XRP are not exempt from U.S. (or global) financial oversight — actually the opposite. Responsible players who use these assets want to work with regulators, not against them. (2/2)”
Is The US Swiftly Losing Its Grip On Global Dominance?
Relying on the Society for Worldwide International Financial Transactions or SWIFT system might be a risky move for the US, as blockchain technology-based platforms are poised to unsettle the payments method. Should the US fail to adopt more innovative methods, blockchain and digital currencies pose a potential threat to the dollar as the global reserve currency.
Cryptocurrencies offer an alternative method of instant cross-border transactions and payments. Independent from the SWIFT system and the dollar, this points to a possible need for the US to consider some form of digital currency to stay ahead.
Other Nations Adopting Central Bank Digital Currencies
Rumour has it that China is piloting a digital yuan in a number of regions across the country. However, no official launch date has been set.
Across the pond, the French are currently leading the European front in the industry of digital currencies. As reported last week, the Bank of France recently saw its first successful pilot of a digital Euro. The country’s central bank is hoping to add a digital currency in order to improve the financial systems in place while tokenising financial assets.