Ripple CEO Brad Garlinghouse has claimed that the world is still “5 to 10 years away” from using cryptocurrencies for payments.
The 47-year-old, who was speaking on a panel at the Blockchain for Europe summit in Brussels, said that the “biggest risk to the market” is “regulatory uncertainty.”
US regulator the Securities and Exchange Commission (SEC) has been clamping down on a number of cryptocurrencies over the past 12 months, slapping the likes of Airfox and Paragon with penalties while charging the founder of EtherDelta Zachary Coburn.
In the UK, the Financial Conduct Authority (FCA) is currently discussing potential regulatory frameworks for crypto assets, with concerns being noted regarding high volatility and price manipulation.
@Ripple CEO @bgarlinghouse on the future of #cryptoassets: “The future in which #cryptocurrencies are used as #payments is at least 5-10 years away. As of today, the biggest risk for the market is #regulatory #uncertainty.” @TheFCA @EU_Commission pic.twitter.com/EudqHDkhWv
— Blockchain for Europe (@BlockchainforEU) January 29, 2019
Thus far, regulation of cryptocurrencies is still a grey area for many. Staunch Bitcoin critic Nouriel Roubini has openly discussed how cryptocurrencies are a “bubble” with no inherent value, which could prompt concern from regulators and lawmakers.
Regulatory uncertainty has been rife during the latest cryptocurrency bear market, which has seen the overall market cap of digital assets fall from $813 billion to $115 billion in the space of 12 months.
There are various aspects of cryptocurrencies that are appealing to the masses, but the lack of regulation is a stumbling block for many to get into the space. An unregulated environment gives rise to a number of scams and Ponzi schemes. It also prevents institutional investment, with companies concerned about investing in assets that, thus far, have no regulatory definition as a security or otherwise.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.