When the concept of virtual assets surfaced a decade back, the potential of ‘Internet of Value’ seemed ready to being unleashed. Originating back in 1982, Internet of Value translates to an online medium where users can transfer any form of value [monetary or social] across the network, while discarding the need for middlemen and basically removing third-party costs.
In the recent episode of The Ripple Drop with Reinhard Cate, Chris Larsen, Co-founder of Ripple, expressed his thoughts on how cryptocurrencies were developing the Internet of Value in the industry.
Larsen explained that IoV had developed over the years as an infrastructure, like a distributed ledger for moving value across the world in real-time, and digital assets were an important part of it in order to reduce liquidity costs and surges. He highlighted that all the other fiat assets like the US dollar, Yuan, Euro etc. needed the the availability of a digital asset so that transforming one form of value to another was easily facilitated.
Cate also raised the topic of digital asset regulations during the interview and queried about the form of regulations that were required for the growth of blockchain and cryptos.
“The key thing is regulatory clarity, not necessarily less regulation. In fact, we would advocate that the best system is going to be one that takes into consideration consumer protection, a nice environment for innovators so that they can feel comfortable to invest in these things.”
Michelle Bond, Head of Government Relations at Ripple, opined on the matter of regulatory clarity and commented that the government wanted an attractive regulatory regime in place, one which would balance technological developments and innovations while leading to more jobs and greater tax revenues.
“From a business standpoint, it’s also very important and that’s because if a business is going to set up shop in a jurisdiction, they want to know that they will have certainty in what the rules are that they need to abide by kind of jurisdictions around the world.”