President Trump looks to Ripple as challenger to China’s BTC dominance
The battle of the superpowers exists even in the cryptocurrency markets. China leads the Bitcoin mining industry at the moment, which gives it more than 70% of the network’s hashrate and thus a considerable amount of power. Bitmain Technologies, a Beijing-based company, is responsible for mining more than half of the world’s bitcoins and has, on more than one occasion, approached 50 percent of the total hash rate alone.
What this means is that China has the power to manipulate and possibly destroy the Bitcoin network should there be enough support behind the move. Naturally, many countries, including the USA, are very nervous about such a prospect.
Ripple in White House meetings
The USA has been looking at ways to mitigate this threat and, according to Ripple Labs, the Trump administration is looking at XRP as a means to counterbalance China’s dominant position and executives from Ripple Labs have had meeting at the White House. Cory Johnson, Chief Strategist at Ripple said: “The White House in particular seems to be thinking about what it means to have 80 percent of bitcoin mining taking place in China and a majority of Ether mining taking place in China.”
Ripple is a private blockchain, which potentially makes it more attractive to banks, and according to Ripple’s CEO, with dozens of banks are expected to use XRP technology by 2019.
Johnson also revealed: “When you look at XRP, there is no mining, so from a foreign-control aspect or from an environmental aspect, XRP is a very different beast. And in conversations we’ve had with the administration, they seem to get that and think that might matter.”
Of course, before XRP can become institutionalised in the US, it will need to be regulated. The SEC still has not yet decided if XRP is a security, and Johnson himself has said that the SEC might never get to decide. Johnson said, “I don’t know that the SEC wants to be in a position to have to comment on every single cryptocurrency or digital asset created and issue a ruling about it.”
It is true that in recent months more banks have expressed an interest in blockchain technology and digital assets such as Ripple, owing to the huge speed and efficiency improvements they are expected to bring to the now-dated financial systems. However, is Ripple’s adoption by the USA the answer to China’s Bitcoin dominance?
What do you think?