Ripple’s CEO, Brad Garlinghouse recently had outlined the opportunities of Blockchain technology and the limitations it was currently facing in the ASEAN market. Blockchain’s application was notably in the Philippines, Thailand, and Singapore. The CEO was of the opinion that Blockchain could be used to eliminate the limitations faced by Banks in these regions.
Countries Seek Counsel on How to Take Advantage of Blockchain’s Capabilities
Garlinghouse revealed a lot relating to cryptocurrency and the Blockchain technology while interacting with Ross Leckow, the IMF’s Deputy General Counsel. First of all, he described IMF’s part when it came to Fintech and Blockchain. He noted that countries that had partnered with them were looking up to them for counsel.
These countries want to know how to take full advantage of Blockchain’s capabilities while minimizing risks through the use of regulations. Here, the CEO labeled Blockchain as digital assets, mobile, APIs, etc. As a step to give counsel to these nations, an advisory group was set up last year. This is a group made up of industry leaders from the public and private sector.
Opportunities in ASEAN Countries
The CEO also noted the opportunities and challenges faced by Blockchain in ASEAN countries. He stated that crypto laws set by the regulators of this region were very clear and there were no uncertainties like other countries. This clarity in regulations can significantly impact on future of Blockchain and cryptocurrencies.
One of such countries is Thailand who has regulations in place to create a balance between user protection and innovation. It has legalized some digital assets including Ripple (XRP). As a result, this will offer a more secure place for people to trade while at the same time enhancing cross-border payments.
Other countries that received his recommendation for having a regulatory framework are Singapore and Philippines. The CEO was also quick to state that there are markets in other continents that have no regulations governing digital assets. As such, the use of cryptocurrency could not be adopted in such areas.
Challenges Faced by ASEAN Countries
Despite the regulatory frameworks in these regions, there were still limitations they faced. Here, Garlinghouse referred to the financial institutions in these countries which face the problem of inefficiency in payments.
In his own words;
In terms of challenges, it is true that historically the region has been behind by correspondent banking. Global banks are contracting some of their traditional correspondent relationships, and this is creating more friction in payments in ASEAN.
However, he said that this limitation would be advantageous to the crypto and Blockchain industry. The CEO also revealed that almost 50 percent of its customers were from ASEAN countries. Moreover, its headquarters in Singapore is one of the few regions where Ripple is growing exponentially.