Monica Long, the President of Ripple, engaged in a discussion with Arjun Kharpal, CNBC’s Senior Correspondent, at Money 20/20 regarding the necessary infrastructure for the integration of cryptocurrencies. The conversation revolved around the theme of “Constructing Infrastructure Fundamentals,” focusing on how traditional financial institutions perceive and adopt digital assets.
Long highlighted a notable change in U.S. legislation and the stance of traditional financial institutions, pointing out the significance of the approval of a Bitcoin ETF in the U.S. as a pivotal moment for crypto adoption. She mentioned that BlackRock’s participation was a significant development. Long also noted that many financial institutions are gradually embracing crypto technology, recognizing it as a modern financial framework.
Despite the recent approvals of Ethereum (ETH) and Bitcoin (BTC) ETFs, Long stressed the importance of clearer regulations. She emphasized the benefits of institutional decentralized finance (DeFi) in fundamental banking operations such as deposits, payments, lending, credit, and capital markets.
Long drew parallels between blockchain’s potential impact on finance and the internet’s influence on communication, underscoring the need for a more global, open, and efficient financial system. She cited the European Union’s Markets in Crypto-Assets (MiCA) regulation as an example of a transparent regulatory framework and hinted at a gradual improvement in the U.S.’s relationship with crypto.
Expressing cautious optimism about regulatory clarity in the U.S., Long mentioned that stablecoin legislation could be a positive development. She also delved into the debate between private and public blockchains, noting that private blockchains are still utilized for technologies like central bank digital currencies (CBDCs), while public ledgers have seen significant advancements.
Highlighting the distinction between fraudulent activities and the technology itself, Long discussed the repercussions of scandals like FTX, emphasizing that fraud does not represent the entire crypto industry. Long stressed the importance of separating fraud from the legitimate applications of blockchain technology, despite lingering concerns from past events.