Cryptocurrency organizations have tried long and hard to enter the mainstream fore but one of the biggest challenges has been governmental regulations. The United States, especially, has been ground zero for digital asset companies but even there they have faced difficulties.
In a new turn of events, Steve Mnuchin, one of President Trump’s most trusted men, spoke about how cryptocurrencies can be beneficial to the overall community. This even caught the eye of Ripple CEO Brad Garlinghouse.
Speaking at the World Economic Forum 20, the Treasury Secretary of the United States claimed that digital assets may actually be good in some regards. Steve Mnuchin was asked several questions about the growing demand of cryptocurrencies and blockchain technology, some of which he deflected.
However, Mnuchin spoke well about one sector of the cryptocurrency market: the cross border transactions department. Cross border transactions have been growing in numbers over the past few years and companies like Ripple have been trying to make it faster and better. The Chief Executive of Ripple commented on how such a powerful political figure had praised a certain part of the fintech industry.
Answering a question about cryptocurrencies, Mnuchin had stated:
“There are benefits to cross-border payment systems in lowering costs for consumers and businesses. We absolutely support companies working on this.”
Garlinghouse opined that such a positive stance must be taken into consideration as Mnuchin was basically a part of the government. The Ripple CEO stated that this kind of discussion and structure must be applied to regulatory bodies that decide the fate of fintech companies. The US Treasury Secretary’s comments on cross border transactions sent the entire ‘XRP Army’ into a tizzy.
It is a well-known fact that Ripple led the way in terms of cross border transactions, especially using partnerships with companies such as MoneyGram and SBI Holdings. The company has also used its native technology as well as cryptocurrency, XRP, to conduct large volume transactions across countries. Some parts of the community believed that such a positive push will drive Ripple’s stocks upwards and even that of XRP.
What makes Mnuchin’s recent comments so sensational was the fact that it was a complete one-eighty to his earlier stance on cryptocurrencies. Last year in July while addressing concerns about Facebook’s Libra, Mnuchin had slandered Bitcoin and the crypto community. He had then said that he will not be loading up on “Bitcoin in 10 years”. He further added:
““I would bet even in five to six years I won’t even be talking about bitcoin as Treasury Secretary.”
Mnuchin’s latest statements may not have mentioned any specific company but it was pretty clear if one took away all the hype. US Government officials are generally wary when they talk about crypto and that is exactly what Mnuchin reflected.
The Trump administration has seen several holds on cryptocurrency regulations and that is likely to continue. While countries like Russia are taking steps to bring cryptocurrencies into their fold, the US was primarily focussed on the upcoming 2020 elections.