Cryptocurrency hasn’t always been in favour of the European Central Bank, but that might soon change with the newly chosen head Christine Lagarde. She has not only acknowledged the potential of digital currencies, she holds a positive opinion of it, stating blockchain “seeks to anchor trust in technology”.
The former French finance minister has of course shown some distaste in the current state of the cryptocurrency market, believing it needs proper regulations. In its current state, the value of cryptocurrency can not be trusted, leading to many being almost afraid of its volatility. During her tenure at the International Monetary Fund’s M.D, she has said that blockchain based currencies are indeed “shaking the system.”
While she hasn’t explicitly named multiple tokens, she has been in favor of Ripple Labs XRP. Earlier in the year, in the Paris Fintech Forum, she warned banks to adapt to new technology or die. Lagarde warned the legacy banking system that they were in danger of not just disruptive change but self-induced cannibalization. She presented Ripple as a helpful way out for banks planning to catch up with the technology change.
The previous head of the ECB was quite the opposite, stating digital assets to be highly risky and should not be labelled as currencies. While under his tenure, the ECB and central banks have pretty much not been able to do any crypto experimentation, Lagarde’s opinion on these assets will be amazing to see the effect on the European financial ecosystem.
Lagarde has had several opportunities to opportunities to have high-level discussions regarding XRP with the Ripple team, leading speculation that the positive attitude towards XRP might continue to the ECB. The blockchain startup could have just set themselves up for global blockchain payments, since if something as large as the ECB adopts them as the defacto crypto payment, they will quickly be picked up by other countries.
Ripple has also successfully caught the eye of the White House, possibly due to China! China has clearly shown that they have a high interest in Bitcoin mining setups, leading the White House to track down an American competitor to support.
Along with the partnerships, Ripple has been gaining, it appears XRP is on track to become the worlds #1 utility coin, maybe boosting the value even higher. For now, while Lagarde settles into her role as head of ECB, there’s wind of major changes coming